Bitcoin is becoming a target of lawmakers to push SEC regulation as crypto gains popularity across the United States.
Does the SEC Regulate Bitcoin?
No. Bitcoin is not currently regulated by the SEC at the moment.
The SEC is responsible for controlling and monitoring financial markets in the United States to make sure investors and companies participate in a fair trade environment. However, crypto has become under great scrunity recently and Bitcoin is the #1 target for lawmakers.
US Senator Asks for the SEC to Regulate Bitcoin Immediately
On October 13th 2022, U.S. Senator John Hickenlooper (D-CO) sent a letter to the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, regarding crypto regulations.
While Bitcoin was designed to be free from central or government control, it appears that the U.S. government wants to control Bitcoin too and limit its ability to provide financial freedom to all Americans.
Bitcoin regulation would take away a lot of freedom Bitcoiners get from HODLing the world’s largest cryptocurrency. It’s unclear how regulation would work but my guess is that Bitcoiners would need to report their holdings to the SEC and pay capital gains taxes on any profitable sales.
SEC Regulation Would Take Away A lot of Bitcoin’s Freedom
It’s possible that the government could seize Bitcoin just like any other asset and control a lot of Bitcoin’s onchain movement if regulations are enacted.
Regulation would make Bitcoin safer for newer crypto investors but remove a lot of the freedom that Bitcoin offers to the average holder.
Crypto investors buy Bitcoin and other assets to provide financial freedom in an unfair financial system that’s controlled by big banks and governments. The SEC could regulate Bitcoin and strip away a lot of Bitcoin’s freedom in the process.
However, regulation may be the only way for the masses to legitimate trust Bitcoin in the future. If major corporations are going to accept Bitcoin across America, people must trust BTC and not become afraid if their holdings are stolen or hacked.
Plus, the SEC wants to desperately generate tax revenue from any and all Bitcoin sales to keep funding big government. I believe the SEC cares more about generating revenue than protecting crypto investors. Let’s see how this story plays out for Bitcoin in the future.