Russia has reportedly implemented a new law that bans crypto payments in the country. This move may rip off the proverbial bandage on the crypto market which has been trying to recover after a major selloff this year. SEC’s Gary Gensler’s latest statements may however water down the fresh concerns over unfavorable regulatory pressure and its impact on the crypto market.
JUST IN: President Putin approves law banning crypto payments in Russia
— Blockworks (@Blockworks_) July 15, 2022
The new law is a step back for crypto adoption and highlights yet another factor that may trigger more selling pressure. This will particularly be the case if more countries implement similar anti-crypto measures. The crypto world is particularly keen on the regulatory path that the SEC is willing to customize the laws to accommodate the unique nature of the crypto market.
Gensler promises a considerate approach
During a recent Yahoo Finance interview, the SEC chair confirmed that the U.S is willing to accommodate crypto companies. However, the SEC wants to ensure that they operate within clearly defined laws as part of its efforts to protect the people. However, the most notable part of the interview is that Gensler confirmed that the SEC plans to exempt the crypto market from some securities regulations.
The SEC chair noted that the exemption aims to encourage crypto companies to pursue regulatory compliance. However, the jury is still out on the SEC’s intentions for the crypto market. Some critics believe that the SEC has been inconsistent when it comes to regulations and protecting the interests of the masses.
History will remember @GaryGensler's regime at the SEC as a bad faith "watchdog" whose regulatory inconsistency jeopardized public trust and weakened our financial markets.
— Tom Emmer (@RepTomEmmer) July 15, 2022
Pushing closer to the edge
It remains unclear whether the SEC’s upcoming crypto regulations will favor the market despite Gensler’s promising statements. However, the resurgence of regulatory pressure may place the crypto markets on the edge as investors watch anxiously to see how things will play out.
If the SEC pivots on the plans that Gensler highlighted, then the crypto market might plunge into another major selloff. On the other hand, a favorable regulatory outcome may encourage more countries to follow suit. This possibility may lead to bullish investor sentiments and potentially trigger another rally.
Although regulatory pressure currently poses a threat to the crypto market, the right kind of regulation may support healthy growth.