What is SEC and Cryptocurrency

Today i would love to discuss about SEC and it role in the crypto space.

I will be highlighting the different points

  • What is SEC
  • What is they role of SEC in Cryptocurrency
  • Why do they exist

So brace up and let’s begin.


SEC stands for the Securities and Exchange Commission, a federal agency that regulates the securities market in the United States. In context of cryptocurrency, the SEC is responsible for determining if or not a particular cryptocurrency is considered a security.


The role of SEC in Cyptocurrency includes;

  • Determining whether or not a cryptocurrency is a security. This is important because securities are subject to a number of regulations, such as registration requirements and disclosure requirements.

  • Enforcing Securities Laws in the cyrptocurrency space. The SEC has the authority to investigate and prosecute individuals and companies that violate securities laws.e.g the SEC has filed lawsuits against companies that have sold unregistered Securities in the cryptocurrency space.

  • Issuing guidance on cryptocurrency space. The SEC has issued a number of guidance documents on cryptocurrency regulation,which provide more information on how the SEC intends to regulate cryptocurrencies. This guidance is important for businesses and investors that are involved in the cryptocurrency space

  • Working with other regulators to address cryptocurrency regulation. The SEC is working with other regulators, such as the Commodity Futures Trading Commission (CFTC),to develop a coordinated approach to cryptocurrency regulation. This is important because cryptocurrencies are a global asset class, and it is important for regulators to work together to ensure that they are regulated in a consistent manner.


SEC exist of protect investors, maintain fair,orderly and efficient markets, and facilitate capital formation. The SEC was created by the Securities Exchange Act of 1934 in response to the stock market crash 1929. The SEC has a number of powers, including:

  • Providing disclosure. The SEC requires companies to disclose material information about their operations to investors. This information is important for investors to make informed investment decisions.

  • Protection from fraud. The SEC’s registration and disclosure requirements help to protect investors from fraud. By requiring companies to disclose material information about their operations, the SEC help investors to make informed investment decisions.

  • Maintain fair, orderly, and efficient markets. The SEC’s enforcement actions help to maintain fair, orderly and efficient markets. This is important for investors, who need to be able to rely on the integrity of the market.


Thanks for this Information you sharing with Tronics in the form.

But my own is that this SEC can be ANNOYING sometimes


Yes you are right @Gordian

SEC shouldn’t have control over crypto IMO. Governments need to start hiring and creating a new task force related to cryptocurrency.

This includes:

  1. Blockchain analysts (Fight blockchain crime)
  2. Liasons for each crypto exchange to then coordinate with the cybercrime division and freeze stolen funds.

I don’t think governments actually care about investors though. :laughing:


I actually like this point of view and suggetion.

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To understand SEC’s role in cryptocurrency, we have to understand what securities are and does crypto fits the security definition.

What the government does best is doing nothing, the dont care about your investments.

The gurus in crypto should create what @WindsOfChange92 has just outlined. Cos if we sit down for government to takeover this, then it would lose its essence of decentralization.

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Right now, Arkham Intel one of TRON’s partners has bounties for basically freelance blockchain analysts to come in and track scammers or other things like blockchain data.

I think most of the bounties are around 1000 $ARKHM which comes out to $410 USD at its current price today.

This is an excellent first step to having a freelance bounty board, but even more of a cybercrime DAO would be more beneficial. Such a business idea would include:

  1. Bounties
  2. Data analytics platform
  3. Audits on smart contracts
  4. connections with all exchanges.
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Thats a great initiative, $410 is not enough but atleast its a great start.

Cant we raise the bar a bit by building a layer two blockchain on the already existing blockchains to track and identify these malicious activities of fraudulent people.

This blockchain can be integrated into all the existing blockchains with the purpose of identifying and blocking activities before it even starts.

I know lossless.io has something for smart contract builders.

It depends on who puts up a bounty. Some are $4000 USD. But the value of $ARKM is being diluted according to Coin market cap.

TRON DAO just has a few for 1000 ARKM.

Not sure if another blockchain is needed but a tool specific for blockchains tracking, which is what Nansen, Arkham, and other data tools are trying to do.

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Oh ok i get it now, so its not fixed, the amount depends solely on the person placing the bounty. And the value in dollars is subject to the price per coin of the $ARKM tokens.

So in effect if one 1 $ARKM has a price of $400 then a 1000 $ARKM as bounty reward will be very mouth watering. :sunglasses::sunglasses:

These hunters are really enjoying. So how do they check if a scammer tries something funny on the system and tried to solve it himself to get the bounty.

Is there a way they can track that