Popular crypto analyst Benjamin Cowen says he expects the price of altcoins to go down considerably within the face of imminent regulation on the trade.
In a brand new interview on Digital Asset News, Cowen says that regulators may set their sights on the crypto house, probably focusing on points such because the power consumption of proof-of-work blockchains, or whether or not or not sure altcoins are unregistered securities.
Last week, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler hinted that Ethereum (ETH) could possibly be thought of a safety following the main sensible contract platform’s transition to proof-of-stake.
“I do think that alts need to go down a lot. Not only with respect to the US dollar but with respect to Bitcoin as well and I think that the narrative that will fuel that will be the regulatory concerns for the altcoin market.”
Cowen says such a scenario may increase problems with whether or not or not these belongings will be listed on crypto exchanges.
“We have to consider that if altcoins are deemed securities, that’s not necessarily a bad thing. We trade stocks all the time and stocks are securities, but the problem is that, I’m not trying to just spread FUD [fear, uncertainty and doubt], in the United States, there might be some questionable things related to [the question of] can U.S exchanges list them?”
Cowen recollects what occurred after regulators filed a go well with towards Ripple over allegations that the funds firm bought XRP as an unregistered safety.
“Think again to when the SEC filed a lawsuit towards Ripple. A whole lot of exchanges had been de-listing Ripple or XRP within the United States. They had been briefly 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 usually like are these items securities if they’d ICOs, that type of stuff. That type of stuff can actually trigger a number of worry in a short time and result in the following 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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