Although most in the crypto the community will remember the year 2018 as the year when the crypto market crashed after reaching its current historical maximum, another equally important issue is regulatory oversight. Things are slowly progressing towards cryptographic space regulation, even though regulators are still urging companies to cooperate with them to stabilize the crypted space.
It is well known that regulatory bodies, such as the US SEC, wish to be included in the plans of companies in the field of innovation. They want permission to be sought and not forgiveness when it comes to making new ideas about trends.
In recent years, the SEC has not often been forced to intervene, and it has only happened five times in 2017, and only once in 2016. However, then came the ICO, which exploded between the run of late 2017, and since the ICOs were completely unregulated at that point, it soon became clear that not many of them would survive. As a result, many investors' money will never see a return, even without including scams in the calculation.
According to the USS Jackson Commissioner, this is what the financial markets would look like if the SEC did not do its job. After the ICO era, the SEC felt obliged to act, which is why he had 18 control actions only in this year. The same applies to other regulatory authorities, such as the CFTC, which has pursued law enforcement actions regarding individuals and companies.
In the end, ignoring regulators turned out to be a bad call for many people and companies, all of which were eliminated from the market. Non-engaging leaves space without regulatory guidance, or protection from bad actors, Soon, the bad facts appear and cause wrong laws. If regulators notice them, they usually tend to intervene, and those who are not willing to cooperate with them only make it difficult to remove harmful aspects.
In other words, forcing the SEC to introduce regulations with enforcement will probably have a much more damaging impact. Meanwhile, collaboration to establish regulations with regulators can offer numerous new opportunities through collaboration with experts. Put simply, it is easier to find a way to be in agreement with the SEC and other regulators than going to war with them and hoping for the best.
Going to war did not do much to help the crypto industry, as the SEC enforcement division ended up carrying orders against unregistered trading platforms, broker-dealers, promoters, hedge funds and more.
The SEC remains open for collaboration
As everyone knows without a doubt, 2018 was the year of change in the cryptography industry. The SEC has tried to help emphasizing the things that those who participate in the crypto The markets should not do. Also announced is FinHub, which is a strategic hub for innovation and financial technology, dedicated to facilitating public engagement with the SEC.
Similar moves indicate that the SEC is willing to learn and properly understand new technologies and trends. Since then, the regulator has taken many praised decisions, which also demonstrate that cooperation with them can lead to progress. Moreover, the SEC is not the only one to try to establish a better communication with those connected to the cryptographic space. The CFTC did the same with their LabCFTC project.
Despite all these efforts, however, only a handful of cryptographic market participants decided to cooperate with regulators, this is a pity, since working together would be beneficial for cryptographic space, especially in situations like these, where the SEC and the CFTC ask for comments and search for discussions on various issues.
While many in the cryptic world might see working with regulators as a bad decision, the fact is that it is not. They will try to bring regulations with or without the help of those who will be affected by these regulations. By participating, companies and the public can ensure that there are no oversights that could cause them harm. With this in mind, it is hoped that the situation will change in 2019 and things like the ICO era will never have to happen again.