Will SEC Proposed Changes Improve or Worsen the Blockchain Space?
The SEC and the US Government as a whole has long been seen as a negative force for those in the cryptocurrency space. In July 2017, the SEC mentioned that it could have authority to apply federal securities laws to Initial Coin Offerings. This could have been one of the nail's in the coffin to the 2017 cryptocurrency bull run. Currently, the SEC been cracking down on ICOs from the 2017-2018 era including Telegram's TON & Kik's KIN.
Despite being harsh in the past both the SEC & CFTC seem to have been changing their tune on cryptocurrencies. The CFTC's Chairman Tarbert said earlier in the year: "I want the United States to lead, particularly in the blockchain technology that underlies digital assets". It appears that the SEC is also changing albeit in a different manner.
The SEC's Accredited Investor Proposed Changes
It seems that this is the first rule changing proposal in roughly 6 months by the SEC. Essentially accredited investor laws allowed only the wealthy to invest in certain companies and projects. It required an annual income of at least $200,000 or $1 million in net worth to register as one.
Current proposed changes will allow many more US citizens register as an accredited investor. It will permit registered investment advisers to register as accredited investors as well as family offices and their clients. Rural business investment companies and limited liability companies will also be able to register.
Have thoughts on the accredited investor definition? Watch our video and weigh in now! https://t.co/LKMruaOQ7Nâ SEC_News (@SEC_News) January 8, 2020
How Accredited Investor Laws Could Influence Cryptocurrencies
These changes will probably not affect any of the major cryptocurrencies in any way or form. It could help new cryptocurrency projects, IEOs, and token launches. Seeing that US citizens were barred from investing in these sorts of projects except accredited investors, by widening the definition more funds could flow to new projects.
Hypothetically we could see a new wave of cryptocurrency IEO's as result of these policy changes although that also depends on Bitcoin's price.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado