Crypto-currency Market Retreats in the Face of Increased Regulatory Pressure from Sec.

The SEC recently revealed its new examination and investigation goals for 2023, which include a greater focus on the cryptocurrency industry. "The Securities and Exchange Commission's Examination Division discloses its examination priorities yearly to give insight into its risk-based strategy," the SEC stated in a press statement.
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The commission's list of this year's objectives includes numerous sectors that pose dangers to investors, such as new technology and cryptocurrencies. The SEC said that it would investigate broker-dealers and registered investment advisers (RIAs) that exploit innovative financial technology or practices. The inspection of filers will be on offering, selling, recommending, or advising on the trade of crypto assets or crypto-currencies.

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A closer look at exchanges

Trade Algo reported on Wednesday that the SEC had opened an inquiry into the Kraken exchange to examine whether or not it traded stocks without alerting the SEC. The inquiry is well advanced, and the regulator and Kraken will probably settle, according to Trade Algo.

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The chief executive officer of Coinbase, Brian Armstrong, tweeted on Wednesday that there are reports that the SEC may prohibit individual users from using cryptocurrency staking services. Staking involves locking cryptocurrency as security for a transaction, like securing a loan.

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Brian Armstrong underlined that staking is not a security that the SEC should regulate or ban. "Staking is a very significant invention in the world of cryptocurrencies. He explains that it permits direct user participation in the operation of open cryptographic networks.

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According to the Trade Algo, bitcoin is trading at USD 22,756 at the time of writing, a decrease of 1.38% over the previous 24 hours. Over the time, the market capitalization of cryptocurrencies has decreased by 1.5%, reaching $1.06 trillion.

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