Moves to make staking illegal and to prohibit banks from working with crypto companies have been a fairly popular tactic by regulatory boards in the US. Either all of these laws are enforced without the knowledge of companies or are forced down their throats.
Even though many do come to the conclusion that this is because of a larger agenda to keep the status quo in check.
Experts from JustReviewed believe it is an effort by all of these different regulatory boards to push the different crypto companies out of the US.
Others believe that introducing cryptocurrencies would hold most of the corrupt leaders accountable since people will have access to ledgers. And with access to ledgers, people will be able to find out where the money is coming from.
While these all could very likely be well-informed conclusions that people come to, most professionals in the trading industry do not believe that is the case. More specifically, instead of thinking that it is some sort of conspiracy, it is actually an effort to protect consumers.
Seeing all of the decisions that different regulatory bodies have made over a short span of time, it has become very obvious that they have the consumer’s safety in mind when they are making their decisions.
Possibly Banning Staking
While many are under the assumption that the SEC is looking to take staking as a whole to task and ensure that no company ever thinks of making something like it, it seems to be the case now that the company has taken Kraken to court.
Kraken featured a staking option that could really help individuals feel like they are part of the greater ecosystem and would even allow them to generate a new passive income stream.
But when the SEC took Kraken to court over this new feature, they forced the crypto firm to completely abandon the prospect itself. After paying the $30 million fine, the crypto firm was not looking to take any chances.
Along with banning staking, there is considerable evidence to suggest that the regulators might also be trying to pressure banks and other types of banking companies to not process transactions from any crypto companies.
This is a serious cause for concern since it could stop any progress that crypto companies try to make right in their tracks.
Making It Harder For Investors to Invest In Crypto
While many regulators might think that they are protecting new investors from the crypto industry, the truth is that they are actually making it significantly more hostile for them.
These moves completely block them off from the market, leaving it ripe for institutional investors to make their way into the market and completely consolidate it.
And if there are some smaller startups that are looking to disrupt the money-making efforts of a specific startup, the truth is that they will not be able to get the funds necessary from banks to even start their business.
Since these policies will actively make it harder for individuals to be included in the financial system when these changes really seem to be preparing the market for the Wall Street investors to come in and make things significantly worse.
Pushing investors overseas
Of course, it is also important to understand that these policies will also be driving businesses overseas as they try to take their business elsewhere. But not only are most of these businesses having to go overseas but most traders will too.
Even if the SEC completely bans crypto companies in the US, it does not change how many of them are still functioning as a very realistic look at what happens when you push an industry too far. Investors will simply trade on international sites.
This means that most of the money that would otherwise go into the country is now going out of it. So suffice it to say that it is not really helping individuals.