If you trade crypto, you've probably heard of the SEC. But honestly, not everyone understands what this organization is and why its decisions shake the entire market. I decided to figure out what’s really going on.

First, a bit of history. The SEC (Securities and Exchange Commission) was established in 1934 after the stock market crash. Essentially, it’s a federal agency in the United States that oversees compliance with securities laws. Currently, Gary Gensler is at the helm, a name that almost always causes panic in the crypto market whenever he makes a statement.

The main mission of the SEC is to protect investors, regulate securities registration, and ensure market transparency. It sounds logical, but when it comes to crypto, it turns into a real war. The SEC oversees investment funds, corporate finance, trading on exchanges, and even conducts investigations into violations. It’s a serious organization.

Now, the most interesting part — the SEC’s influence on crypto. Although the agency’s powers officially extend only to the U.S., since it’s the world’s largest financial center, any of their decisions impact the global market. And they use this influence quite actively!

Gensler clearly believes that cryptocurrencies are a risky area. He recognizes Bitcoin only as a commodity, not a security. But tokens, ICOs, trading on exchanges — all of this, in his view, should be strictly regulated. And the result is a wave of lawsuits against major platforms. Lawsuits against leading exchanges accused of trading unregistered securities caused a real shock in the market.

I remember when the SEC filed a lawsuit against Ripple, the company managing XRP, the market trembled. Allegations of raising over $1.2 billion through the sale of unregistered securities are serious. Then there was the story with PAXOS and their stablecoin BUSD. The SEC claimed it was an unregistered security, and the price dropped. It took several days to recover.

Now, the SEC is gradually starting to scrutinize the entire crypto market more closely. Stablecoins like USDT and USDC, DeFi protocols — all of this is coming under fire. The compliance requirements are getting stricter.

In short, if you’re serious about crypto, you need to understand that the SEC is not just a name. It’s an agency that can turn the market trend around with a single decision. So when you see news about the SEC, it’s best to pay close attention.