empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
19.11.2021 06:01 PM
Bitcoin: when and how crypto industry will begin to regulate
Open trading account Open demo account

Bitcoin failed to hold above the $60,000 area. The main cryptocurrency bounced off the resistance of 61,048.64 and, as expected, technically descended to the support of 55,842.84.

Against this background, events can develop as follows. The first scenario is an attempt to return to the level of 61,048.64. And from there, perhaps, to growth. The second scenario is a fall to the next support of $52,000 per coin.

In the meantime, we are waiting for things to calm down, I propose to shift our attention to long-term prospects, in particular, to issues of regulation of the crypto industry.

Regulation of the crypto market: to be or not to be

The question of taking control of the rapidly developing crypto industry has been raised a long time ago. Market participants fear that the authorities will shut off the air to the market and stop innovations. Now it is still unclear what measures to apply, and this was clearly shown by the situation with the infrastructure law.

On this occasion, an interesting article came across Bloomberg. Industry participants are proposing to take on this issue and engage in self-regulation.

What is a cryptocurrency self-regulatory organization?

Major exchanges, including Coinbase and Gemini, and well-known investors such as Andreessen Horowitz, have pushed the idea of a Self-Regulatory Organization (SRO). They argue that the organization is better at overseeing a new and complex industry than traditional agencies that are now trying to apply old rules to a new market.

Proponents of this idea believe that the SRO could be more flexible in making decisions about the rules regarding new products since its members have both the experience and the resources.

"The job of a regulator is not easy when you're confronting something new. The question is, how do you get to an environment where the regulatory infrastructure can be more nimble?" said Greg Xethalis, chief compliance officer at crypto investment firm Multicoin Capital.

Market experience of self-regulation

Self-regulation on Wall Street has a long history. SROs, which are funded and run by their own members, set rules, conduct audits, and impose fines. They have powers delegated by Congress and regulatory bodies such as the Securities and Exchange Commission (SEC). Several years after Congress formed the SEC as part of President Franklin D. Roosevelt's New Deal, the agency delegated some oversight of brokers and brokerage firms to the National Association of Securities Dealers (NASD).

This organization has now become the Financial Industry Regulatory Authority (FINRA). Its functions include oversight and licensing, it now controls commodity brokers, and the major stock exchanges themselves are self-regulatory organizations.

What functions will cryptocurrency SRO take on?

A self-regulatory organization, according to Bloomberg, can take responsibility for suppressing at least some of the violations by outsourcing serious fraud to agencies such as the SEC.

For example, an SRO can decide whether a newly issued token should be classified as a security, commodity, or something else. Or deal with mundane tasks such as setting product disclosure rules or standards governing customer data management.

Its behavior will be monitored by the SEC and other agencies, who will have the final say if they disagree with the SRO's decisions.

What are the prospects for such a regulation scenario?

Most supporters of an SRO agree that such an organization would likely need an act of Congress allowing the SEC, CFTC, or other regulators to register and potentially delegate authority to it.

Such a bill could take years to pass. However, senators, including Wyoming Republican Cynthia Lummis, have said they plan to create comprehensive cryptocurrency legislation that could give SRO supporters the opportunity to bring their plan to life.

This image is no longer relevant

Ekaterina Kiseleva,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Analytical News
US Market News Digest for May 20 Despite the downgrade of the US credit rating and rising Treasury yields, retail investors remain active buyers of equities. Net purchases have surged to a record $4 billion, signaling confidence
Ekaterina Kiseleva
12:16 2025-05-20 +02:00
1690
Fundamental analysis
AUD/USD. RBA Delivers Dovish Scenario, but It's Too Early to Rush into Selling The Reserve Bank of Australia (RBA) followed the most expected scenario at its May meeting, cutting the interest rate by 25 basis points. However, AUD/USD sellers remain vulnerable
Irina Manzenko
11:44 2025-05-20 +02:00
1390
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

BTC/USD Analysis on May 20, 2025

The wave pattern on the 4-hour chart for BTC/USD has been becoming more complex in recent months. We observed a corrective downward structure, which completed its formation around the 75,000
Chin Zhao 11:11 2025-05-20 UTC+2

Technical Analysis of Daily Price Movement of Ethereum Cryptocurrency, Friday May 16, 2025.

If we look at the 4-hour chart, the Ethereum cryptocurrency appears to be moving above the WMA (21) which is a dynamic support where the WMA has a slope that
Arief Makmur 06:09 2025-05-16 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday May 16, 2025.

On the 4-hour chart, the Uniswap cryptocurrency appears to have a Descending Broadening Wedge pattern, so even though the Uniswap price movement is moving below the WMA (21) which
Arief Makmur 06:09 2025-05-16 UTC+2

Bitcoin spikes from $96 600 to $104 500 in 24 hours

Bitcoin has surged to $104,500, after trading at $96,600 just yesterday morning. This confident move above the $100,000 mark clearly signals a return of strong bullish momentum in the cryptocurrency
Jakub Novak 14:49 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 9

Bitcoin has climbed above $100,000, while Ethereum is trying to consolidate above $2,000. After yesterday's sharp rally, which continued during today's Asian session, Bitcoin is now trading at $103,000, having
Miroslaw Bawulski 09:46 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Ethereum Cryptocurrency, Friday May 09, 2025.

If we look at the 4-hour chart of the Ethereum cryptocurrency, it appears that the price movement is moving above the WMA (30 Shift 2) which also has a slope
Arief Makmur 06:27 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Bitcoin Cryptocurrency, Friday May 09, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, the Stochastic Oscillator indicator can be seen to be in Overbought conditions and is now preparing to Cross SELL and break below
Arief Makmur 06:27 2025-05-09 UTC+2

Bitcoin: Who's Driving the Price Up — Powell, the U.S. Treasury, or Short Squeezes?

While stock indices remain stagnant, gold consolidates near its highs, and Bitcoin is once again capturing attention. The crypto market's flagship has approached the psychologically important $100,000 level
Ekaterina Kiseleva 00:28 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 8

Bitcoin reached just below $100,000, while Ethereum hit $1,900. Such a major growth in the cryptocurrency market once again confirms its bullish outlook, which has been discussed quite
Miroslaw Bawulski 09:22 2025-05-08 UTC+2

Bitcoin on the Brink: Breakout or Reversal?

Bitcoin's price is hovering near a psychologically significant threshold, with market participants bracing for another upward surge or a sudden reversal that could erase short-term bullish expectations. More chart
Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Top analytics

Relevance up to 23:00 2025-05-20 UTC--4
EUR/USD Forecast for May 20, 2025
05:08 2025-05-20
Technical analysis
Relevance up to 20:00 2025-05-20 UTC--4
Trading Recommendations and Analysis for EUR/USD on May 20: The Dollar Is Looking for Reasons to Fall
04:09 2025-05-20
Trading plan
Relevance up to 23:00 2025-05-20 UTC--4
How to Trade the EUR/USD Pair on May 20? Simple Tips and Trade Analysis for Beginners
05:40 2025-05-20
Trading plan
Relevance up to 20:00 2025-05-20 UTC--4
EUR/USD Overview – May 20: Fearless Moody's and a New Blow to the Dollar
07:31 2025-05-20
Fundamental analysis
Relevance up to 03:00 2025-05-21 UTC--4
Forecast for GBP/USD on May 20, 2025
11:22 2025-05-20
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.