SEC has made it very clear that they are going to be some extreme enforcement on the crypto industry as the regulatory agency is working its way to fully understand the crypto space and implement changes and regulations wherever necessary. The Securities and Exchange Commission has ordered its regulators to come up with a plan to implement these regulations; a step-by-step approach will prove extremely elegant towards this objective. Given the volatility of the market and the risks that surround the expansion of the crypto space, these regulations are a must, according to senator Elizabeth Warren. 

She is also well aware of the positive sides of using cryptocurrency over fiat money, but she fears that if left unregulated, it could have devastating consequences for the conventional financial system already in place. She fears that if those segments of the crypto market that are a threat to the present fiat financial system are not fully attended, it could lead to a severe financial crash. The investment of the investors doesn’t seem to be secure in the crypto space as regulations are not well caught up with the pace of the market as it occurs. 

Regulated Crypto Market is a Threat to Conventional Financial Infrastructure

The volatility is too high; there are no indicators whatsoever when the market is going to take a horrific turn as the crypto market is nothing like the stock market, which can very well be studied and analyzed regarding the trends that might hit in the future. Of course, it could either be up or down; one can’t be so sure with the stock market as well, but at least there is a system in place to study it and then to act along with the best possible information present.   If this thing is not tended to in the imminent future and the Securities and Exchange Commission fails to incorporate those regulations and given time, then it will simply mean there is going to be a bloodbath of the crypto market, and therefore a bailout package should very well be in order to tackle the financial consequences it will impose on other conventional markets.