It just might finally be true that the “Wild West” of Crypto is coming to an end. Bloomberg, Coin Telegraph, as well as other news outlets, reported today that the U.S. Department of Justice has officially launched an investigation into the price manipulation of Bitcoin and Ethereum.
Many of us might be saying that it’s been a long time coming. It’s true that the only ones who should be afraid are those who have been skirting the rules including people who have been joining “Pump and Dump” groups on Telegram and other apps like Discord.
The first outlet to break the news about the investigation was Bloomberg, which cited four specific critics who chose to remain nameless, though they made sure to state that they believe that skirting the law is a normal state of the Crypto market.
It should be made clear that the investigation is meant to be wider reaching than simply looking into “Pump and Dump” groups. Reports state that it will look into just about any activities that could affect market prices, in theory.
Prime examples of this include spoofing or activities like creating bots to fill the exchanges with orders that aren’t even real. “Pump and Dump” groups may be thought of as connected to this because of what Bloomberg’s report says about anything that fraudulently influences market movement being investigated.
The Justice Department is working with the Commodity Futures Trading Commission on this, whom some of you already know as the employer of Chris Giancarlo, who serves as its chairman and doesn’t blindly stand against Cryptocurrencies.
The two organizations will use past examples of fraudulent activities in markets like the futures and equities markets, in their current efforts. The only difference will be that everything will be considered, of course, in the decentralized and often anonymous context of the Blockchain world.
Bloomberg even suggested that the investigation could be wider than only Bitcoin and Ethereum and the CFTC as well as the Department of Justice could be keeping further details close, on purpose. All in all, it seems like concrete regulations could finally be coming.
Still, overall, it’s logical to wonder how much they can actually do. The CFTC reportedly cannot yet fully regulate crypto markets but what it can do is enact sanctions against digital currencies if it proves fraud in any way. If you are a Crypto investor as of now, as this all moves forward, now just might be as good a time as any to HODL.
By: BGN Editorial Staff