Will US SEC Halt Crypto Enforcement Over IMF Advisory?

Crypto News: The U.S. Securities and Exchange Commission (SEC) is actively filing enforcement actions against the biggest of the crypto firms and leaders. In this process, the top financial regulator has been alleged of not providing clear crypto linked rules and taking harmful actions against the industry. However, International Monetary Fund (IMF) issued a report addressing the regulatory issues around digital assets.

Also Read: Coinbase Bags Another Win Against US SEC In Crypto Rulemaking Case

IMF Highlights Crypto Bans Led By Regulators

As per the IMF report, an interest in Central Bank backed Digital Currencies (CBDC) is on the rise in Latin America and the Caribbean. However, it noted that managing risks around the crypto is crucial and the current approach taken up by serval regulators might not work.

It mentioned that a few countries have gone on to ban crypto assets entirely. This perspective can prove to be wrong in the long run. The IMF advised that a regulator needs to focus on addressing the factors leading to a spike in demand for crypto assets. This includes checking up on users’ digital payment needs along with improving transparency. It can be done by recording digital assets related transactions in a region.

IMF highlighted that risks related to digital assets vary from country to country. However, the UN body has already issued an advisory to mitigate different kinds of risks related to the market.

US SEC has been criticized for its actions taken against the crypto industry in the absence of clear regulations. The commission recently filed back to back lawsuits against the biggest of the crypto exchanges, Binance and Coinbase. However, it also categorized a huge number of crypto assets as ‘“Securities” which triggered a massive sell-off in the market.

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Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at ashish@coingape.com

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