Bitcoin’s price (BTC) crash escalated during the weekend. Most coins traded near the lowest level in more than 15 months. Many altcoins also hit their lowest prices since May 2017. Some analysts believe the SEC crackdown market impact has contributed to the ongoing selloff. This added pressure to an already bearish trend.

Bitcoin’s price plunged below $3,500 during Sunday’s trading. Its market cap dropped below $70 billion for the first time since August 2017. The bearish trend, which started at the beginning of the year, wiped out more than $700 billion from the total cryptocurrency market cap. Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and several others are among the biggest losers.

Source: coinmarketcap.com

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.”

Source: Cointelegraph.com

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 — especially considering the recent SEC crackdown market impact — 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.