Altcoins Could Get Hammered by Upcoming Regulations, Says Crypto Analyst Benjamin Cowen

Standard crypto analyst Benjamin Cowen says he expects the value of altcoins to go down considerably within the face of imminent regulation on the business. 

In a brand new interview on Digital Asset Information, Cowen says that regulators may set their sights on the crypto area, doubtlessly focusing on points such because the power consumption of proof-of-work blockchains, or whether or not or not sure altcoins are unregistered securities. 

Final week, U.S. Securities and Trade Fee (SEC) Chairman Gary Gensler hinted that Ethereum (ETH) could possibly be thought of a safety following the main good contract platform’s transition to proof-of-stake.

“I do suppose that alts must go down loads. Not solely with respect to the US greenback however with respect to Bitcoin as effectively and I feel that the narrative that can gasoline that would be the regulatory issues for the altcoin market.”

Cowen says such a state of affairs may elevate problems with whether or not or not these belongings could be listed on crypto exchanges. 

“We now have to contemplate that if altcoins are deemed securities, that’s not essentially a foul factor. We commerce shares on a regular basis and shares are securities, however the issue is that, I’m not attempting to simply unfold FUD [fear, uncertainty and doubt], in america, there is likely to be some questionable issues associated to [the question of] can U.S exchanges checklist them?”

Cowen recollects what occurred after regulators filed a swimsuit in opposition to Ripple over allegations that the funds firm bought XRP as an unregistered safety. 

“Assume again to when the SEC filed a lawsuit in opposition to Ripple. Plenty of exchanges had been de-listing Ripple or XRP in america. They had been quickly delisting it and what if that’s just like the tip of the iceberg as to what’s about to occur within the altcoin market?… 

The regulation on issues like proof-of-stake or simply generally like are this stuff securities if they’d ICOs, that form of stuff. That form of stuff can actually trigger a variety of concern in a short time and result in the subsequent leg down within the altcoin market and extra particularly just like the alt-Bitcoin pair the place it goes again to Bitcoin.”


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