Does the SEC’s increasingly favorable position on cryptocurrencies signal a new era on the horizon? What seems like an approving stance concerning decentralized cryptocurrencies such as bitcoin and ether would suggest that a more liberal regulatory administration is coming to the fore.
While this encouraging viewpoint won’t reduce any of the risk associated with cryptocurrencies at the moment – volatility will be part of the crypto landscape for the foreseeable future – it should see an increase in institutional investors, especially with developing clarity as far as regulation is concerned.
One of the main takeaways from this regulatory view of decentralization is the now accepted permanence of the leading cryptocurrencies, even if the playing field of newly-minted tokens and coins is somewhat overflowing.
As the likes of bitcoin and ether establish themselves as the primary players in the cryptocurrency field, we are seeing more instances of regular market forces driving price volatility, with supply, demand, and prominent parties moving capital – all of them playing a greater part, just as they do in the regular economy.
Decentralized cryptocurrencies won’t be going anywhere anytime soon, and business models based on blockchain technology will continue mounting a significant offensive on long-established players.
The attitude of the SEC would also suggest that it won’t be long before we see development and adoption of blockchain technologies across other heavily regulated sectors that were deemed untouchable not too long ago, such as pensions and insurance.
Those who belong to the status quo will point towards the volatility of decentralized cryptocurrencies and the relatively unknown capabilities of blockchain technology as the primary factor behind their apprehension. However, it could be argued that what threatens them most is the decentralized, consensus-based platform on which all blockchain business models are created.
One of the fundamental problems with any new, landscape-changing innovation is that traditional players still try to define the innovation in a manner that complies with known conditions that already apply.
Those who try their best to pigeonhole cryptocurrencies and those new businesses who employ the blockchain into traditional categories are fighting a losing battle.
Choosing to ignore the advancement of blockchain and the disruptions that accompany it has been described by some as making the same mistake that many print media giants made when faced with questions posed by the burgeoning internet.
It isn’t difficult to look around today and see which print media companies chose to ignore the rise of the internet, and which embraced it and the opportunities it provided.
The challenge for regulators and leaders now is finding a way to apply some form of regulation that can better protect the public from risk that doesn’t hinder innovation and growth.
The landscape is changing, and as more regulators finally see the light, those who refuse to budge from their traditional ways run the risk of being left behind.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.