Crypto Startups Face Regulatory Logjam

There are more than 35 cryptocurrency startups who have applied to become regulated but are stuck in limbo due to regulators not approving any of the applications; “Membership applications from firms proposing to engage in digital-asset businesses present new, complex issues and we are in the process of working through them,” Finra spokesman Ray Pellecchia said to the Wall Street Journal; some applications have been sitting with regulators for more than 6 months which is supposed to be the limit on application decisions; companies are unable to set up platforms or sell securities leaving them operating without a clear future; protecting investors is still one of the main reasons the companies are in this position, regulators believe manipulation will cause unsophisticated investors to lose money. Source.