The SEC is not Responsible for Bitcoin’s Price Crash, Says Cryptocurrency Attorney Stephen Palley
Bitcoin’s price (BTC) crash escalated during the weekend, leaving the majority of coins to trade around the lowest level in more than the past 15 months. Indeed, numerous altcoins traded around the lowest level since May 2017.
The Bitcoin price plunged below the $3,500 level during Sunday’s trading, and its market cap dropped below $70 billion for the first time since August 2017. The bearish trend that started at the beginning of the year has wiped off more than $700 billion from total cryptocurrency markets cap. Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and a few others are among the biggest losers.
Investors and traders are wondering what caused the huge selloff in the cryptocurrency markets. Some are blaming Bitcoin Cash’s hard fork while others are charging the SEC for crashing the crypto markets.
Stephen Palley, the blockchain attorney, has refuted trader’s accusation that the SEC crackdown has triggered the bearish spell.
SEC Crackdown is not Responsible for Crash
Palley strongly defended the SEC crackdown on ICOs and irregularities in exchanges.
“I’m not sure that there is necessarily any connection between recent SEC activity and the price of cryptocurrency that may or may not be the case, but it’s difficult for me to see a necessary cause or relationship,” Palley said.
The attorney said the SEC would go after all the illegal activities in crypto markets. He said the SEC is a government organization, which is created to streamline financial markets and to tackles scams and other unfair techniques that could hurt investors’ money.
Commenting about the latest crackdown on two ICOs, Palley said, “If you look at the Paragon or AirFox orders that came out on Friday what they [SEC] say is actually pretty common sense, which is just because it’s newfangled technology doesn’t mean that established security principles don’t apply.”
The issuance of ICOs are declining at a robust rate over the last couple of quarters after seeing a boom in fiscal 2017; the drop in the ICO rate is attributed the SEC’s crackdown. The SEC has drafted new rules and certain guidelines for ICOs to ensure traders’ interest.
“I don’t think that the model [ICO] is completely gone now. But the US is not the only market in the world and securities laws are different elsewhere. So I don’t think that we’ve seen the end of this, but what it’s going to look like in the United States. I’m not sure,” Palley added.
What’s your opinion about Stephen Palley’s stance? Do you believe the SEC is responsible for the price crash? Express your opinion in the comments section below.