This Is Why You Need To Rethink Investing in Crypto by@ras

This Is Why You Need To Rethink Investing in Crypto

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Regulators are starting to discern between bitcoin and 20,000 crypto tokens. Bitcoin is the only cryptocurrency that is a commodity and has the regulatory clarity. According to SEC, most crypto tokens will need to register as securities. Global market regulators are likely to launch a joint body within the next year to coordinate cryptocurrency rules better. If done right, crypto regulation will create a level of oversight that will create an oversight field for people that breaks into the field. Some investors might survive and even flourish, but most will not go to zero due to the clampdown.
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Ras Vasilisin HackerNoon profile picture

Ras Vasilisin

Entrepreneur, investor, and founder & CEO @VirtuseExchange

In recent months we’ve seen some historical collapses. Some were in stablecoins, some in DeFi platforms, and some in hedge funds.


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And just like after every major crash, politicians use it to impose new regulations. But this time, it might not be a bad idea.


In fact, new regulatory updates are detected all over the world. From recent moves in France to MiCA in the EU to India and China, it seems like every regulator is eager to regulate this booming industry.


Moreover,  according to Ashley Alder, Chair of the International Organization of Securities Commissions (IOSCO), global market regulators are likely to launch a joint body within the next year to coordinate cryptocurrency rules better.


But here’s the interesting part.


Regulators are starting to discern between bitcoin and 20,000 crypto tokens.


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Last week, for instance, Securities and Exchange Commission Chairman Gary Gensler said bitcoin is the only cryptocurrency that is a commodity and has the regulatory clarity.  The same has been confirmed in the past by the CFTC, the Fed, ECB, and Bank of Japan.


Now the question is, what about the other 20,000 cryptocurrencies?


According to SEC, most crypto tokens will need to register as securities. And that is good news. Such oversight will give investors more regulatory clarity and confidence in the crypto industry.


Of course, there’s an obvious question to ask.


Can regulation prevent new Lunas in the future?


And the answer is probably not.


Scams are happening in the regulated industries as well. The US subprime mortgage crisis, commodities market spoofing, the Ponzi scheme of Bernie Madoff, and the LTCM collapse were all under highly regulated government oversight. Yet they were frauds, and no regulator could prevent them from happening. That is to say; regulation is not the answer to everything.


However, even crypto market participants are evolving toward tighter regulation and realizing that the fully anarchic world is not the way to go.


To put it another way, crypto regulation is inevitable and will be a good thing. If done right, an oversight will create a level playing field with repercussions for people that break the rules.


But, before that comes into effect, don’t be a hero and avoid investing in crypto tokens altogether. Some might survive and even flourish, but most will not go to zero due to the clampdown.


And if you still want to keep exposure in crypto, hodl bitcoin, it’s the only investment-grade digital asset.



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by Ras Vasilisin @ras.Entrepreneur, investor, and founder & CEO @VirtuseExchange
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