There can be no denying that regulators such as the SEC have cryptocurrency in their sights. Ripple’s court case with the Security and Exchange Commission (SEC) has been dragging on for nearly three years, and although the latest news suggests that Ripple is ahead at the moment, the price damage the case has caused is considerable.
Recently, the SEC hit staking hard. This forced Kraken a popular U.S based exchange to pay $30mil in settlement ‘for failing to register its staking as a service program’. News like this hits the markets hard and prices tend to drop. So what’s your next move in an increasingly hostile landscape?
In collaboration with the crypto experts Financer.com, this article my give you some insights into finding resilient, good crypto exchanges and making good investment decisions although it is not financial advice.
Exchanges and Staking
The SEC regulation win against Kraken has effectively torpedoed any kind of staking options in the U.S. That said, at the moment other exchanges based outside of the U.S. do offer staking options so check them out. As countries tend to follow in lockstep with one another, European, British, and Chinese based exchanges may attack staking. So follow developments and get ready to move or liquidate your investments when needed.
The case made against Kraken was that it should have registered its staking as a service program with the SEC. The $30 million fine and general clampdown on staking will have profound impacts on the whole industry.
Central Bank Digital Currency
Some argue in the crypto world that the rise of Central Bank Digital Currency (CBDC) is a driver for regulators to attack crypto. All around the world, different countries are bringing in different regulations with some more extreme than others.
Country after country is preparing to bring CBDC into existence that will transact on a blockchain and many crypto commentators cite rules based currency systems similar to social crediting rolled out in China, as dystopian.
As cryptocurrency is a possible solution to avoiding CBDC, it has found itself in the crosshairs of the SEC and similar regulatory bodies.
Again, we are in murky waters to some degree, but nonetheless, the CBDC rollout is an aspect to watch in relation to your crypto investments.
World Events
We all know that world events have a profound impact on investments. Right now, inflation is never far from the news especially as it has been rising fast. This is another area where your attention is needed as rises and falls will make significant price adjustments to currency.
So What’s Your Next Crypto Move?
From a staking point of view, it would be in your interests to move staked crypto out of American exchanges. Coinbase CEO Brian Armstrong recently tweeted that the SEC wants to end staking for retail investors. It is hard to disagree with this point, so finding an exchange where you can use staking facilities could well be prudent.
The markets generally are hard to predict. They seem to rally and fall and it can be hard to nail down why.
One area that arguably should be on your radar is AI crypto. Significant rises have occurred and again it would be prudent to keep it on your radar at the very least.
Good luck!
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