Question No. 5:
There’s Talk of Government Regulation.
Isn’t That Bad for Cryptocurrencies?
by Ian King
Well, a lot of people might think that’s a bad thing. But it’s not. It’s actually a great thing.
Regulation is part of why I call this trend “the end of the beginning.”
That’s because it’s part of the normalization of cryptos, making them a legitimate asset class with the same investor protections as stocks, bonds and real estate.
I’ve spoken to countless investors who have been wary of cryptocurrencies because the space is filled with “pump and dump” scams and frauds. You might even be one of them. But investors are warming up to this market as cryptocurrencies gain greater protections.
For example, Coinbase, the most popular crypto platform, is now FDIC insured up to $250,000. It recently passed 10.7 million customers — more than brokerage firm Charles Schwab.
Meanwhile, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are moving in and shutting down the fraudulent projects that prey on unknowing investors. In mid-February, the SEC suspended three small crypto stocks for questionable activity.
And we want more of that regulation and investor protection. All of which seems to be in the cards.
In a recent Senate testimony, CFTC Chairman Christopher Giancarlo spoke favorably of blockchain — the distributed ledger technology that allows cryptocurrencies to function. He even went so far as to say: “We owe it to this new generation to respect their enthusiasm for virtual currencies, with a thoughtful and balanced response, and not a dismissive one.”
Just to stress this, the CFTC is considering a “thoughtful and balanced response,” which bodes well for the market … and crypto traders like us.
Regulators Pave a Road to Less Risk
This might sound crazy, but I believe there was more risk buying bitcoin a few years ago when the price was under $1,000. Back then, you faced the risk that no one would ever take cryptocurrency seriously and regulators would shut down the exchanges.
Now, not only are institutional investors taking it seriously, but they are also figuring out ways to implement them in diversified portfolios. The exchanges know this, and that’s why you can now trade bitcoin futures on the CME, the CBOE and soon, the Nasdaq.
Think about that: For the first time in our lives … there is a new asset class.
We’ve always had stocks, commodities, currencies, futures and things like that. But now we have crypto assets, and government agencies see that it’s real, legitimate and worth regulating.
Of course, we are still in the very early innings of this new asset class: The bull market only started about a year ago. So, while there are generational gains ahead, the crypto markets are still extremely volatile, and the markets are hard to access.
That’s why I’m excited to share my Crypto Profit system for the first time.
With it, I’ve developed a step-by-step guide to help investors enter the crypto markets safely and profitably. That’s something that’s particularly needed as regulators continue to figure out the market.
To learn more, be sure to visit www.cryptoprofitsummit.com daily to see pre-webinar previews and posts.
Creator, Crypto Profit Strategy