Critics have called out the SEC's "regulation by enforcement" tactics,
but to some investors, it's a positive sign they're seeing to invest in
digital assets.
The United States Securities and Exchange Commission’s (SEC’s)
more-than-enthusiastic crackdown on the crypto industry is being seen as
a positive signal for the majority of crypto investors, according to a
new survey.
Around 60% of 564 survey respondents in the latest MLIV Pulse survey from Bloomberg said they viewed the recent flurry of crypto crackdowns as a positive sign for investing in the asset class.
Around
65% of retail investors signaled they were “more likely” to invest with
“greater enforcement against crypto” compared to 56% of professional
investors.
Conversely, only 35% of retail and 44% of professional
investors said they would be “less likely” to invest as a result of
more enforcement action.
The U.S. SEC has stepped up its actions
over the past months, with high-profile investigations of bankrupt
crypto companies Celsius Network, and Three Arrows Capital along with a reported probe into Yuga Labs and the wider nonfungible token (NFT) space.
It also famously fined reality television star Kim Kardashian to the tune of $1.26 million for promoting the EthereumMAX cryptocurrency without proper disclosures.
The
investor sentiment appears to run in contrast to many U.S. lawmakers
and crypto industry participants, who have repeatedly criticized the SEC
for taking what they call a “regulation by enforcement” approach to cryptocurrencies.
Gurbir Grewal, the SEC's enforcement director said in September it will investigate crypto firms regardless of the narrative that it’s “stifling innovation.”
Related: The SEC should be aiming at Do Kwon, but it’s getting distracted by Kim Kardashian
The SEC has also boosted its ability to handle specialized issuer filings by adding an Office of Crypto Assets in September purely focused on dealing with crypto asset applications and services.
Despite the interest gained from investors by the crypto crackdowns, the market conditions
have seen many major cryptocurrencies sit within a tight price band for
months and around 43% of survey respondents said they would increase
their crypto exposure over the next 12 months.
source link : https://cointelegraph.com/news/investors-are-loving-sec-s-crypto-industry-crackdown-according-to-survey
