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Question #275

How might regulatory clarifications from the SEC affect Bitcoin market stability and investor confidence?

Category: General
They impose taxes on Bitcoin block rewards lowering miner profitability and reducing network security.
They mandate Bitcoin wallet audits increasing compliance burdens without impacting price or market trust.
They ban all cryptocurrency trading nationwide eliminating Bitcoin markets entirely and destroying investor confidence.
Clear rules reduce legal uncertainty boosting institutional investment and enhancing overall Bitcoin market stability.

Why is this the correct answer?

This is correct because clear regulations from the SEC reduce uncertainty about legal status, encouraging institutional investors to enter the market and making it more stable. Beginners should recognize that regulatory clarity often leads to increased confidence and investment.

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