The Securities and Exchange Commission (SEC) is the United States’ financial regulator. They ensure that all investors are protected. However, with the recent explosion in ICOs, cryptocurrencies, and blockchain technology, as well as an increase in unregistered securities or unregulated securities offerings that often raise huge amounts of capital with little to no oversight or regulation, it is becoming increasingly difficult for the SEC to regulate these crypto projects. The crypto conduct authority project’s ability can help to protect investors by preventing fraud and investor losses.
One of the ways that regulators can protect investors is by conducting authority. Authority in this case means having guidelines and requirements for crypto exchanges to follow so that they can conduct themselves in a way that respects investor protection. A crypto regulator is like a protective shield for investors in this new and unregulated market. The jurisdictions that regulate the cryptocurrency market need to take responsibility for protecting investors and establishing investor protection frameworks that will safeguard their interests. When a cryptocurrency is regulated, it becomes easier for the general public to trust it. A regulator can also establish investor protection frameworks that are easy to understand and follow, which is essential in a highly volatile market like cryptocurrency.
Crypto regulators put in place regulatory measures so that the investments made by individuals are not imprudent and the coins can be used as an asset class and not just put into speculative investment schemes. Securities regulation is the governing body of financial markets. It is responsible for making sure that investors are protected and that the securities markets are transparent. There are many ways in which a crypto regulator can protect investors. The most important role of a crypto regulator is to maintain investor protection by ensuring the adequate disclosure of risks and potential returns on investments.