Many of us have been saying this for a long time: there’s no way the federal government and Federal Reserve will tolerate a rival.

Cryptocurrency is a form of money that doesn’t depend on government approval and can’t be tracked in the same way as regular currency.

Though the Security and Exchange Commission (SEC) is already taking big steps against it. Most recently, that includes demanding that online platforms like Coinbase start switching to only Bitcoin (which the feds can have easier oversight on).

It’s important to understand how cryptocurrency works in order to understand why the government wants to block or control it by forming its own Central Bank Digital Currency (CBDC).

Cryptocurrency is a virtual online-traded currency. It is encrypted and issued along a blockchain, which is basically a random assortment of computers that verify the code to pass on the verified value.

This randomizes and hides the trail of the money, as the computers remain unidentified on the blockchain, making the money outside the frame of the government or a bank to destroy.

That’s why the feds want to get their hands on the blockchain and be the only ones who can issue digital and confirm cryptocurrency.

To do that, organizations like the SEC need to make the kinds of moves they are, cutting into cryptocurrency markets and enforcing stricter rules.

As Coinbase CEO Brian Armstrong said, the SEC has been hassling them and threatening lawsuits for not identifying its cryptocurrencies as “securities.”

In other words, the SEC wants a piece of that pie and is pressuring Coinbase and other online exchanges to fall under its jurisdiction. Armstrong said they disagreed with the SEC about classifying non-Bitcoin cryptocurrencies as securities.

There has been some variation since this time, with both sides saying the delisting of other cryptocurrencies isn’t going to happen at this time. Whereas it’s clear the SEC is pushing hard and the feds want more of a stake in the crypto empire.