[Why is everyone talking about the US SEC, and their actions are critical for cryptocurrency businesses? 】

The U.S. Securities and Exchange Commission (SEC) is responsible for overseeing the securities market and enforcing securities laws. Financial advisors must understand the rules to protect clients from financial losses and legal problems. Understanding regulatory risks can help avoid scams and market manipulation and improve the quality of evaluations of cryptocurrency investments.

The SEC determines whether cryptocurrencies and initial coin offerings (ICOs) fall within the scope of securities laws, which affects the trading and offerings of these assets. The SEC may require all cryptocurrency exchanges to register as broker-dealers or national securities exchanges to monitor the market and protect investors. Registration increases transparency and enables investors to make informed decisions.

SEC regulations are designed to protect investors from fraud and ensure that markets operate fairly. The SEC actively investigates and prosecutes fraud in the cryptocurrency industry to prevent manipulation and enhance market confidence. The SEC also constantly evaluates new innovations and adjusts regulatory strategies to legitimize cryptocurrency businesses by creating a legal structure that attracts traditional investors and institutions.

The SEC also enforces counterterrorism financing (CTF) and anti-money laundering (AML) laws, allaying public concerns about cryptocurrency abuse. The SEC’s involvement helps establish boundaries between traditional securities and cryptocurrency assets, providing a clearer market environment and reducing legal uncertainty through compliance standards.

Due to the global and borderless nature of cryptocurrencies, international cooperation is required. The exchange must register with the SEC as a national securities exchange to ensure the platform operates legally and safely. Cross-border cooperation can help resolve enforcement challenges and create a more unified legal structure.

The Howey test is a key tool used by the SEC to evaluate financial arrangements and products and determine whether regulation is applicable. The SEC’s actions shape the regulatory environment for cryptocurrencies, affecting their acceptance, investor trust, and market development.

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