The U.S. Securities and Exchange Commission (SEC) recently published a list of nine cryptocurrency companies that had registered with the regulator. However, five of these firms have since shut down, despite being compliant with SEC regulations. The news has caused concern within the industry, and some believe that the regulatory environment needs to be more supportive.
Blockchain of Things, which had been in operation for over seven years, shut down at the end of February. YouNow gave up on its PROPS token last year, while ParagonCoin closed down after getting into trouble over an ICO. Enigma MPC and Airfox (Carrier EQ) tried to restructure to survive but ultimately failed.
The remaining four companies that have survived SEC registration include Hiro Systems, SALT Lending, INX exchange, and Ceres. However, there are concerns that more crypto firms may have applied for registration and failed.
Stuart Alderoty of Ripple Commented On The SEC
Stuart Alderoty, the chief counsel of Ripple, which is currently battling with the SEC, has warned emerging firms to avoid launching in the U.S. due to the harsh regulatory environment. Alan Silbert, the North American CEO of crypto exchange INX, also commented that the SEC needs to create a more welcoming environment for companies that are trying to adhere to the law.
It remains to be seen whether the SEC will take steps to address these concerns. However, the news has highlighted the challenges that cryptocurrency companies face in navigating a complex regulatory landscape. In the meantime, some firms may choose to avoid the U.S. market altogether.
