Investors Are Seeing The SEC Crackdown On The Crypto Industry As A Positive Sign
According to a recent study, most crypto investors regard the Securities and Exchange Commission’s (SEC) overzealous assault on the crypto business as a positive indication.
According to the latest MLIV Pulse survey from Bloomberg, over 60% of 564 respondents saw the recent flurry of crypto crackdowns as a favorable indication for investing in the asset class.
Compared to 56% of professional investors, over 65% of regular investors indicated they were more inclined to invest with more enforcement against crypto.
In contrast, just 35% of regular investors and 44% of professional investors indicated further enforcement action would make them less inclined to invest.
The US Securities and Exchange Commission has increased its activities in recent months, with high-profile investigations of insolvent crypto businesses Celsius Network and Three Arrows Capital, as well as a rumored inquiry into Yuga Labs and the broader nonfungible token (NFT) industry.
It also fined reality television celebrity Kim Kardashian $1.26 million for improperly promoting the EthereumMAX cryptocurrency.
The investor stance appears to be at odds with many U.S. legislators and crypto industry players, who have frequently chastised the SEC for pursuing regulation by enforcement of cryptocurrencies.
The SEC’s enforcement head, Gurbir Grewal, stated in September that the SEC would examine crypto businesses regardless of the narrative that it is stifling innovation.
Despite the interest generated by the crypto crackdowns among investors, market circumstances have seen several major cryptocurrencies remain inside a tight price band for months, and about 43% of poll respondents stated they would expand their crypto exposure over the next 12 months.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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