Question

Why would the SEC care about cryptocurrency? Is the SEC's oversight of cryptocurrency consistent with its role/duties?

Answer 1

The cryptocurrency is as well known digital currency exchange in which encryption / cryptography techniques which operate as independent currency and well adopted for financial transactions and generation of various currencies and transfer of funds. The important factor is that it operates without any regulatory or independent of any central bank.

Now a days, “bitcoin” is flowing in the market and are used for the accumulation of wealth by the corporates and individuals. The coins are beyond any kind of restriction and confiscation of any authority.

The SEC is aware of cryptocurrency exchanges and the risen threats to investors as the exchange runs unfettered and unmonitored. But due to its vast spread of transaction and regulation free from any regulatory or controlling authority, it is moving oversight of SEC. The SEC knows the potential towards the market manipulation and the swinging volatility of the exchange between currencies making it virtually of sight from the eyes of SEC or all worlds central banks.

The SEC has done its best to stop the transactions in Bitcoins in-shore and off-shore, but the vide-spread agency and agents benefits in dealing in Bitcoins makes it very difficult to monitor and stop transactions in cryptocurrency exchanges.