Recent research by Bank of America reveals that pressure coming from regulatory uncertainty is causing token prices to drop. This uncertainty is the result of legal action taken by the U.S. Securities and Exchange Commission (SEC).
The researchers noted that excessive focus on regulatory headwinds, spot bitcoin exchange-traded-fund (ETF) approval in the U.S. and illegal activity has overshadowed the rapid development and integration of blockchain technology infrastructure. This includes private permissioned distributed ledgers and blockchain subnets that allow the tokenization of traditional assets.
According to the report, blockchain infrastructure and tokenization will “transform financial and non-financing infrastructure and markets over the next five to 10 years.” This comes right after Bitcoin’s supply on crypto exchanges hit a five-year low due to SEC’s actions against Coinbase and Binance.
The SEC filed back-to-back suits against the two largest crypto platforms, leading Binance and Coinbase to agree to keep assets held for customers in the United States. Binance stated that user funds will always stay safe on platforms affiliated with them.
Coinbase, on the other hand, was accused of functioning as an unregistered exchange, brokerage and clearinghouse. They have maintained that the SEC refuses to give them clear direction on how to register as a compliant trading platform.
