The United States is busy putting in place a cryptocurrency regulatory system, with rules that do not please. In this context, the United States SEC recently declared that Ethereum (ETH) could be considered a security after the Merge. Additionally, altcoin prices could crash with upcoming regulations. But how ?
These cryptos could fall against bitcoin and the dollar
Benjamin Cowen, a well-known cryptocurrency analyst, recently said that altcoin prices could drop significantly. And the coming regulations in the cryptocurrency industry could be the basis for this. Cowen thinks regulators could decide to target the energy consumption of Proof-of-Work blockchains (PoW). They might also seek to verify whether certain altcoins are registered securities or not.
Benjamin Cowen explained: “I think altcoins need to drop significantly. Not only against the US dollar but also against bitcoin and I think the narrative that will fuel that will be the regulatory concerns for the altcoin market.“. He added : “We must consider that if altcoins are perceived as securities, it is not necessarily a bad thing.“.
After all, stocks are regularly traded around the world even though they are securities. For Cowen, the problem is elsewhere: it could happen that American exchanges are no longer able to list altcoins.
According to analyst Cowen, it is highly likely that all altcoins will suffer the same fate as XRP. Indeed, when the SEC sued Ripple, it affected XRP. Subsequently, the cryptocurrency was subject to a temporary removal from the list of assets of many exchanges, which caused it to plummet. And the same may happen in the altcoin market with upcoming regulations.
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