The majority of the US-based crypto companies are under the attack of multiple regulatory bodies because supported assets bearing different types of nature under different situations
Crypto & blockchain industry adoption is surging rapidly because of the real world use cases like better & efficient payment systems & secured data processing systems. But in this adoption race, many crypto companies are going through a huge struggle because of the unclear regulatory policies, especially in the United States.
In the present time, there are three types of countries, in the first category there are those countries that are totally against cryptocurrencies like China, and in the second category, there are those countries that adopted crypto as an alternative money market under a precise regulatory framework. For the second category countries, we can take the example of El Salvador, which adopted Bitcoin as a legal tender in September 2021.
But the main problem is associated with those countries where rules are either unclear or partial. In short, in such types of countries, every regulatory body is working in their way to show its power & contribution in the crypto Industry.
The crypto companies which are based in the United States are facing huge regulatory issues. The US Securities and Exchange Commission (SEC) is taking action against those crypto platforms which are providing crypto assets trading. And the reason of action by the SEC agency is exhibited with the nature of crypto assets, not the nature of crypto services.
On the other hand, the US CFTC agency is taking regulatory actions alongside the SEC agency because few crypto assets are showing Commodity nature.
Here we only talked about SEC & CFTC agencies, which are taking action according to what they see in this industry under their authority. There are also many regulatory bodies in the US & US states which are working separately to regulate the crypto companies, which is not the usual case in other countries.
Here we can take an example of the Coinbase exchange, which is under investigation by the SEC agency for its crypto assets trade offerings. According to the SEC, many assets on the Coinbase exchange are security, while the SEC agency is not taking the same action against other crypto companies which are providing crypto trading of the same assets.
Probably these types of issues can be solved if the US govt may establish a new agency or a small unit that can categorize all the crypto assets under a particular category.