Peter Prinbacher, a German finance pundit, believes that the US Securities and Exchange Commission (SEC) will kill most cryptocurrency projects except Bitcoin as they don’t comply with the SEC and CFTC’s securities regulations.
In a Medium post on Sunday, January 1st, Peter Prinbacher expressed his thoughts on the regulatory status of the crypto sector. He believes that after the FTX shockwave, the SEC and other regulators will force big crypto exchanges to trade only regulated securities, leading to the closure of many small and even some large altcoin projects.
Therefore, in his Twitter thread, he said that he was out of all altcoins as he can no longer assess the risk.
https://twitter.com/Freiheitsinvest/status/1609795680381329408
Most Cryptos are Securities Except Bitcoin
Explaining his views, Prinbacher wrote that the US SEC and other regulators consider most cryptocurrencies as securities except Bitcoin,
“Which is considered a commodity because there is no initial issuer, but BTC is created through mining. Just like a commodity.”
According to his article, the FTX scandal will come to play. As the dust settles, SEC and regulators will come hard on crypto exchanges and force them to deal only with regulatory-compliant cryptocurrencies. This will lead to the ultimate death of many small projects.
They will still be available offshore or on DeFi platforms but the function of the major exchanges as an onramp from fiat to crypto will be gone, resulting in the near-death of fresh capital into these projects. The future of many well-known altcoin projects like ETH, MATIC, SOL, and ADA also looks uncertain. Few will remain, “but they are rather insignificant to the market.”
The post reads:
“After the FTX scandal, the SEC will regulate the big exchanges and force them to trade only regulated securities. This will eliminate all the small crypto projects! Maybe a few of the big altcoins will manage to comply with the regulations. So ETH, MATIC, ADA, and a few others, but not even with those it is certain that their whole corporate structure will even comply with the regulations.”
Being extremely bullish, he believes that Bitcoin will be the only decentralized currency that will survive the regulatory hammer of the SEC and CFTC. This will consolidate the BTC place as a store of value and as an asset class alongside gold, real estate, stocks, bonds, and other securities.
For Peter Prinbacher, Bitcoin will be the entire crypto as he wrote:
“For me, in any case, crypto is over since a few days, for that I am extremely bullish on Bitcoin!”
