Tokens in SEC's Crosshairs May Benefit from a New Era
Tokens under the scrutiny of the U.S. Securities and Exchange Commission (SEC), such as Solana, Cardano, and XRP, may seize opportunities from the increase in regulation and oversight in the cryptocurrency industry. The SEC's attention often leads to higher levels of trust and safety for tokens that meet legal criteria. This could create a new era for tokens that are considered more legitimate and safer for investors.
However, strict regulations could also pose challenges for some other tokens if they do not qualify to be registered as securities. The SEC's lawsuit against Coinbase for allowing the trading of assets that should have been registered has heightened attention on the compliance level of tokens in the market.
At the same time, the SEC targeting stablecoins like BUSD will create opportunities for other stablecoins, such as USDT, attracting more investors looking for stability amid unclear regulations. Thus, tokens that the SEC or other regulatory bodies do not focus on may benefit greatly in the current situation, as users tend to seek safe coins that have support from official institutions.