Blockchain attorney Stephen Palley has shared his opinion on Bitcoin tumbling below the $5,000 mark. He said he doesn't see a connection between the recent SEC activity and the price of cryptocurrency.
November 22, 2018 | AtoZ Markets - Regardless of the market’s up and downs, blockchain attorney, Stephen Palley thinks that it is too early to write off the flagship cryptocurrency, Bitcoin, Ethereum or ICOs due to the temporary market crash.
Palley believes that the underlying blockchain technology is revolutionary and it won’t change.
No Connection Between SEC and Bitcoin Price Crash
Despite what some analysts think, Palley, however, asserted that the recent regulatory crackdowns by the US Securities and Exchange Commission (SEC) have affected Bitcoin prices. In an interview with Bloomberg TV, the lawyer stated:
“I’m not sure that there is necessarily any connection between recent SEC activity and the price of cryptocurrencies. It’s difficult for me to see a causal relationship.”
Palley continued further, stating that the United States is not the only crypto market in the world and that securities laws differ by nations across the world. Hence, the SEC regulatory actions don’t necessarily impact the entire crypto universe. Amidst the recent market crash, Palley remains bullish about the long-term future of cryptocurrencies.
The lawyer does not believe that ongoing short-term market fluctuations will impact the crypto industry’s long-term success. He added:
“I would not write off bitcoin, and I would not write off Ethereum. These are very interesting technologies.”
SEC Actions Not Meant to Deter ICOs
When asked if the SEC was trying to send a message to the crypto community with its high-profile take-downs of two ICOs (Paragon and AirFox), Palley said no.
As AtoZMarkets reported, the US SEC cracked down on two cryptocurrency startups, Paragon, and AirFox for hosting illegal initial coin offerings (ICOs). The commision then ordered the firms to pay a $350,000 fine and to refund investors who had participated in their ICOs. While Paragon was required to repay $12 million to investors, AirFox was ordered to refund $15 million.
It is somewhat believed that this is one of the reasons crypto prices crashed as the regulator was after the crypto space due to these takedowns. However, when asked about these claims, here is what Palley said:
“I don’t know if the SEC is in the business of sending messages when it engages in enforcement activities or when it enters cease-and-desist orders with companies that have violated securities laws. The SEC, for some time, has made it clear that while [cryptocurrency] could be really nifty technology, securities laws still apply.”
Follow The Rules
Basically, Palley is saying that the virtual currency community shouldn’t think that securities laws don’t apply to them simply because crypto is a new technology.
Palley has also called the crypto community to be wary for some of its actions. According to him, just because crypto is a new technology does not mean that securities laws do not apply to them. This new technology must adhere to the already established laws. Palley believes that if there was some message from the SEC, it would be “we told you. Follow the law.
The blockchain lawyer also stressed that SEC regulatory actions have not in any way dampened the interest in ICOs as he recently got a call from someone in Europe who shown interest regarding an ICO. Palley stated the following concerning ICOs:
“I don’t think that the interest has gone away. There was this silly notion that you could raise money to build a business by selling something that would give someone access to the business that you’re building, and somehow you could get away with not complying with securities laws...Companies that think they can use ICOs to raise money and then not abide by these laws are wrong. Those groups deserve to be taken down for not following the rules."
It is worthy of note, that Stephen Palley’s bullish outlook is in line with Fundstrat’s Tom Lee, who has reaffirmed his stands by his $15,000 Bitcoin price prediction before the end of 2018.
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