Why Could June 13 Be a Critical Day for Cryptocurrencies?
The cryptocurrency market has an important volatility that helps traders profit from it. Of course, these movements in the market have a wide range of factors that determine them. But one of the most important is related to regulations: investors trade in a market that is not regulated by authorities, which could one day support or ban virtual currencies.
But in June, this could potentially change. The United States Securities and Exchange Commission (SEC) will be present at an investor conference at the Georgia State University.
Exactly on June the 13th, the SEC will be holding a ‘town hall’ event at the university where community members can engage in discussions with the different members of the agency. There will be different topics discussed, including cryptocurrencies and new disruptive technologies.
The SEC has taken a very strong stance towards Initial Coin Offerings (ICOs) and some cryptocurrencies in the market. But it is clear that its position not anti-technology but simply anti-scam. At the same time, it wants to have under control all the activities around cryptocurrencies, something that other regulatory agencies around the world are also doing.
With new clear regulations the market could experience a reduction in volatility and help the industry grow by reducing uncertainty in the markets.
At the same time, institutional investors and other wealthier individuals are not investing in the crypto market because there is no clear legal framework and because most of the virtual currency exchanges are not regulated.
This meeting prepared by the SEC could help the market to understand what is expected to come in terms of regulations. With it, traders and other companies will feel more secure while investing in the crypto market and, eventually, reduce volatility.