The SEC, or Securities and Exchange Council of the United States, has always rang alarm bells about crypto innovations. Their latest target is interest-bearing crypto accounts. In the past, chair of SEC Gary Gensler had spoken at length about the ills of cryptocurrency. One of their main argument was that cryptocurrencies have the potential to destabilize the national economy. At a time when the USA is dealing with internal political issues and high rates of inflation, very little of what the SEC predicted has come true. However, that does not stop them from being assertive about the crypto space and determining what is legal.
In a recent press statement, the SEC mentioned that they were on a campaign to protect American investors and educate them about how the digital asset market works. The SEC said that crypto accounts that pay interest are nothing like bank deposits where your money is safe. Considering the volatility of crypto assets, this analysis comes as no surprise. However, the SEC made its anti-crypto policies clear while talking about how dangerous these accounts can be. In reality, they are much like cryptocurrencies that have high volatility. The global crypto market runs on this volatile and investors already have knowledge about it.
While educating people about digital assets is very important, it does not come with the necessity of vilifying interest-bearing crypto accounts. Many are now afraid that the SEC will impose more stringent regulations to give momentum to its narrative. At a time when most countries are welcoming crypto, the United States seems to be doing the opposite.