The government assault continues. Another day, another attack on the world of Crypto. The newest reports involve a criminal investigation by the US Justice Department of SPOOFING in cryptocurrency markets. In the world of trading, spoofing is the practice of placing orders you have no intent on letting be executed. This is done to send false signals to other traders to manipulate the market price of a security. This is illegal in the United States. The Dodd-Frank Bill of 2010 outlawed the practice.
Now federal regulators believe this is happening in the world of cryptocurrencies and they have started a criminal investigation involving Bitcoin and other currencies. Do not panic. Time for some perspective here.
On the upside. Government intervention means crypto is still growing, not just in sheer volume, but in reputation and acceptance. This is a good thing. Crypto going mainstream means it is here to stay. That puts those who are already in it… in a much more favorable position. The federal government does not investigate small players. So welcome to the majors, crypto.
On the downside. Those who are trying to take shortcuts and manipulate crypto… are now on the radar. They have now reached critical mass for criminal investigations. But this also creates another upside for the rest of us. A world of crypto where big time scammers will ultimately be sifted out, so the currencies can naturally flourish as intended.
Wall Street has had hundreds of scandals, investigations and indictments and it has survived. So will crypto. Remain skeptical, remain vigilant, and don’t waiver in your belief in crypto.