After “talking the talk,” the SEC (Securities and Exchange Commission) is now “walking the walk” when it comes to regulating cryptocurrency companies.

After issuing a number of warnings, including one from SEC Chairman Gary Gensler in September of last year, the agency has begun to follow through with fines and other penalties.

Gensler originally issued his warning while speaking to the US Senate. He said then that there were only a “small number” of cryptocurrencies trading on crypto markets that were not securities.

Gensler then went on to say in his wide-ranging testimony that he felt that the cryptocurrency industry should fall under his agency’s oversight. He also added that he thought DeFi is really decentralized only in name and that most DeFi tokens are also securities.

Not content to just issue threats, the SEC has begun to take action in a big way to restore order to what has often been referred to as a “Wild West” cryptocurrency market. For example, recent actions taken by the SEC include:

• It charged Poloniex with operating an unlicensed crypto exchange … the company settled by agreeing to pay the SEC $10.4 million
• It filed suit against Ripple, the parent company of XRP cryptocurrency, which promptly lost 63% of its value

• And most recently, BlockFi announced it was going to pay $100 million to settle charges levied against it by the SEC

How to Proceed …

All of these developments have many investors questioning how they should proceed in the marketplace.

Whatever you decide to do with your money, experts recommend that you proceed with caution. That means:

• Pay attention to the details – Select cryptocurrency companies that are reputable. Some companies have even gone the extra step of developing a relationship with the SEC. These companies stand a good chance of enjoying success in the more regulated marketplace of the future. The bottom line is doing extensive research and paying attention to the little details can have a big impact on the level of investment success you achieve in the future.
• Also, don’t stop learning – the more you learn and apply, the better you’ll do. It’s that simple. Never think you have it all figured out. Keep reading, keep watching videos, keep researching. Improving your marketplace knowledge is one of the best ways to ensure consistent crypto trading success.

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