CTF Written Submission

Uncertain Regulations, Definite Impacts: The Impact of the U.S. Securities and Exchange Commission’s Regulatory Interventions on Crypto Assets

Feb. 18, 2025
  • The SEC's classification of most cryptocurrencies, except Bitcoin, as securities has led to significant adverse market reactions, with returns dropping 12% over one week post-announcement.
  • The lack of clear regulatory guidelines from the SEC has created an unpredictable and volatile environment for market participants, increasing systemic risk and regulatory arbitrage.
  • The SEC's actions, influenced by traditional financial industry interests, may stifle innovation and push entrepreneurs to more crypto-friendly jurisdictions.

Last Reviewed or Updated: April 3, 2025