Over the last few years, the crypto industry has faced a huge threat from the US Securities and Exchange Commission.
The commission has been cracking down relentlessly on crypto companies and assets with countless regulations and lawsuits, under the supervision of its current chairman, Gary Gensler.
The last straw, however, was how the US Securities and Exchange Commission simultaneously sued Binance and Coinbase (two of the largest centralized crypto exchanges), less than a day apart in June 2023.
There may be a ray of hope though, according to recent reports. and the SEC may be on its way to tasting some of its own medicine.
A new bill introduced by two House Republicans could change the game in no time, by removing Gensler as a way to restructure the agency.
Reps. Warren Davidson and Tom Emmer, both members of the House Financial Services Committee, introduced the SEC Stabilization Act.
The bill seeks to "remove Chairman Gensler following his long series of abuses that have been permitted under the current SEC structure," according to a statement from Emmer's office.
The bill would also reform the SEC by appointing a sixth commissioner, creating an executive director role, and prohibiting any political party from holding more than three commission seats.
The law would also limit the SEC's regulatory, investigative, and enforcement authorities, as well as require the agency to be more transparent and accountable.
What impact does this new bill have on the crypto ecosystem?
Several times a year, a news piece about how the SEC recently sued a new cryptocurrency exchange or another firm appears on the internet.
In summary, the SEC has been relentlessly attacking the crypto ecosystem under Gensler's supervision.
Gensler, who took office in April 2021, has targeted, among others, Binance, Coinbase, FTX, Bittrex, and Beaxy Digital. The SEC has frequently stated that most cryptocurrencies are securities and should be regulated as such.
So far, he has also urged cryptocurrency platforms to register with the SEC or face regulatory action.
Under Gensler's watch, the SEC sued two of the world's largest crypto exchanges, Coinbase and Binance in June 2023, for allegedly violating various securities laws. The lawsuits accuse both platforms of offering unregistered securities, facilitating illegal trades, misleading investors, and failing to register as broker-dealers.
And if the SEC has its way, the lawsuits could force Coinbase and Binance to delist or restrict access to certain tokens, pay hefty fines and penalties, and comply with strict disclosure and reporting requirements.
The crypto market has reacted negatively to the SEC's actions, as investors fear more regulation and uncertainty.
According to data from CoinMarketCap, the total market capitalization of all cryptocurrencies dropped by about 15% in the past month, from $1.27 trillion to $1.06 trillion where it now sits.
Bitcoin, the largest cryptocurrency by market cap, also fell by about 15%, from $30,700 in mid-April to $26,118 where it now sits.
While Bitcoin and the crypto market are currently in a doom and gloom phase, some analysts still believe that the bill could also have positive effects on the crypto market in the long term.
They argue that removing Gensler from his position could ease the regulatory pressure on the crypto industry and allow more innovation and competition.
They also point out that crypto is a global phenomenon that cannot be easily contained or controlled by one country or regulator.
This is without mentioning how a new video recently surfaced in a tweet shared by Ryan Serkis, showing Gensler who has endlessly persecuted crypto and its facilitators, saying something very interesting.
In this video, Gensler is seen speaking on stage at a Bloomberg conference in New York, sometime in 2018.
According to the tweet's caption, Serkis' quoted Gensler from the video, saying: "Bitcoin, ether, Litecoin and Bitcoin Cash. Why did I name those four? They're not securities"
As it stands, Gensler no longer seems to believe his own words and has endlessly hounded crypto affiliated companies since taking office in 2021.
For starters, the bill faces several challenges before it can become law. First, it would need to get support from Democrats, who control both chambers of Congress and the White House.
Second, it would have to withstand any prospective legal challenges from the SEC or other parties who could object.
Third, it would have to consider the concerns of other agencies and stakeholders who may hold opposing views on how to regulate crypto.
Furthermore, the bill is not the only issue that might have an impact on the future of cryptocurrency. Other regulatory concerns from various countries throughout the world are also affecting the crypto industry.
A good example is how Binance has been banned or restricted in several countries, including Japan, Germany, Canada and Singapore.
Coinbase, on the other hand, has been sued by customers over various issues, such as account hacks, service outages and tax reporting.
Meanwhile, this might be good news for the crypto market, because…
Santiment, in a recent tweet, may have pointed out something interesting about Bitcoin's latest dip, and the behaviour of the whales.
Santiment in the tweet pointed out that there is a "quiet" bullish divergence between Bitcoin's price that recently fell and the rate at which the whales bought the cryptocurrency.
Santiment noted that the whales' holdings went up by approximately $1,000 Bitcoins per day, just as the prices fell.
This suggests that the whales may have been buying the dips massively and that a strong rebound may very well be on its way.
The SEC Stabilization Act is a bold proposal that could end the SEC's war on crypto by removing its chair and restructuring its agency. The bill could have significant impacts on the crypto market and its participants.
However, the bill faces many hurdles and uncertainties before it can become law.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.