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SEC will launch cryptocurrency nodes

Date: 31.07.2019

The US Securities and Exchange Commission has taken up the selection of performers who can launch the nodes for the functioning of various decentralized systems. These nodes will have to start working with the most common cryptocurrencies. Bitcoin and Ethereum should be among the first to be launched. These are some of the top priority candidates for connection. In addition to them, cooperation with Bitcoin Cash, Stellar, XRP and others is also planned.

 

Launch of common cryptocurrency nodes

The SEC is a serious supervisory authority in the United States of America, so its decision is very important. The fact that the search for contractors to launch cryptocurrency nodes has begun indicates a major breakthrough in this market. Naturally, the launch of the nodes will not affect everyone, but only the time-tested large representatives of this market. It is also worth noting that the regulator did not provide any explanation as to what the purpose of launching cryptocurrency nodes is.

 

Requirements for contractors

The only thing that the customer provided was an application for the search for contractors, which talked about collecting data, analyzing existing risks, and creating laws to regulate certain types of cryptocurrency. This application also contains a clause that all received data must come from the original source. Thus, the commission will not be able to take a block observer as a contractor. Many people who work in this field assume that the Securities and Exchange Commission is looking for an analytical company that should monitor the specified networks, as well as study them in detail. She needs to understand whether the actions of Bitcoin, Ethereum and other cryptocurrencies fit into the laws of the United States of America. In addition, the regulator is going to study the encryption algorithms used in cryptocurrencies, analyze the mining industry of electronic coins, as well as the mechanisms for implementing funds within the network.

It is the contractors responsibility to send progress reports. This is required to be done daily. If there are any facts that may interest the commission, the company should immediately send a report. The whole work takes about three months from the day the request for the addition is received.

 

Information about the illegality of ICO

If the SEC launches its nodes, it will open up the opportunity for it to find evidence that the ICO is illegal. When the commission receives information on how exactly the launch of the cryptocurrency and the preliminary sales of its coins were made, it will be possible to find violations related to illegal operations, which are described in the laws of the United States of America on the issue of securities. The likelihood of this is high, as regulators in the United States often file complaints with these kinds of charges.

 

Positive moments

It should be noted that there is a positive point among the assumptions. A certain number of people believe that the SEC is trying to build the conduct of its further policy in accordance with the nuances of the functioning of decentralized networks. Thus, this will make it possible to formulate adequate laws designed to regulate this area. This is a positive moment, as it will contribute to the development of cryptocurrencies and their integration into other areas of life.

If the situation turns out in such a way that the commission begins to move away from prohibitions, as well as bringing forward lawsuits, then this may indicate a desire for further cooperation. The fact that its representatives are beginning to understand the nuances of the functioning and peculiarities of the blockchain just confirms the positive attitude in this area.

Quite a few cryptocurrency exchanges are unwilling to partner with clients from the United States of America. This is precisely due to the large number of claims submitted by this supervisory authority. In addition, American clients do not have the opportunity to participate in the placement of many types of tokens. Accordingly, all of this is still slowing down the investments that can come to the industry thanks to US clients.

User opinions

There are several opinions among cryptocurrency users about the current situation. Many people believe that the interest in decentralized networks from the US Securities and Exchange Commission is positive. Indeed, at this stage, there is still no full understanding of the essence of the blockchain by government authorities. All this will be the first steps towards new cooperation. These users believe that with a detailed analysis of the specifics, the policy regarding cryptocurrencies can relax.

Another part of users does not believe in positive changes. The main concern is the loss of privacy. This will really shake the foundations of cryptocurrency. This argument is supported by the scandalous reputation of the SEC regulator, since before that most of the initiatives from it were negative. So far, the news about the search for contractors allows only making assumptions about the further development of the relationship.