It turns out the SEC has been churning out subpoenas to tune of about 80 in total. According to a lawyer who spoke with Coindesk, the subpoenas are very detailed and ask for just about every minute detail of the particular coin offerings they happen to be investigating.
The companies subpoenaed are not listed and have not yet been made public, so we can’t assume if they were sent to the smaller and more obviously fake ICO’s or if they have targeted some of the bigger names. Either way, the SEC looks to have access to a huge amount of information in the near future, and that is information it can release and feed to the public and legislators, with most of it probably being bad.
I have confidence that despite some of the language coming from U.S. regulators to be measured, the SEC plans on putting together some type of narrative that illustrates all the negative findings they can come up with. Thus providing the SEC with the ammunition needed to ask for the power to regulate crypto fully. That’s just how buearacracy works. They don’t spend all day compiling evidence that shows they are unnecessary. Instead, they work all day to find evidence to prove they need more authority.
Based on this I would expect a season of SEC fud to be coming relatively soon. Although it could take some time as subpoenas generally give companies time to compile all the data that was asked for. So it could be several months before the details and finding of these SEC requests come out. But rest assured, they will come out, and they will detail all the bad behavior they can.
Because of all of this, it just strengthens my belief that the currency coins such as BTC, LTC, and XMR, will do well this year. These coins look to do better if there is an upcoming storm of SEC fud regarding ICO’s. A crackdown on ICO’s and making the process harder to launch a coin helps major players like BTC. Also, those currency coins mentioned above were not part of any ICO, so no regulation regarding to ICO’s will effect them directly.
Overall, I believe that the alt market as a whole has a lot of headwinds coming up and this news just makes that more obvious. You can even see it now as BTC has increased in market dominance despite many people claiming it would start falling already.
Now I’m not saying there won’t be any winners in the alt market this year, of course there will be. But there will be no “alt season” where alts all just run up in value. So as an investor, you have to decide if you have the ability to pick the few winners out of the alt market, or go for more guaranteed gains in the large cap currency coins like BTC.