Clear Cryptocurrency Regulations is the U.S.: A New Space Cannot Be Regulated With 1993 Laws
Regulations in the cryptocurrency space have been a major point of focus. In February this year, Treasury Secretary Steven Mnuchin noted that cryptocurrency regulations will soon arrive in the United States. Some people consider cryptocurrency regulations as a hindrance to innovation and adoption. However, the cryptocurrency space is at higher risk due to the absence of clear regulation.
Due to unclear regulations, numerous cryptocurrency exchanges have moved their base to other countries. Recently, Jason Williams of Morgan Creek Digital featured in a podcast, asserting that his company discussed with regulators.
Williams noted that the firm is actively working with the SEC and FINCEN. Based on the firm’s discussion with the regulators, he thinks the regulations are on the way.
In the words of Congressional candidate David Gokhshtein (a cryptocurrency enthusiast), the United States will fall behind if it fails to ease up on the regulations as several cryptocurrency firms move to countries that have enhanced regulatory infrastructure. According to Gokhshtein, it is not possible to regulate a new space with 1993 laws.
The Federal Reserve Bank of Dallas published a report recently stating that clear regulatory measures could be better for the price of cryptocurrencies.
Currently, cryptocurrency market participants are discussing central bank digital currency (CBDC). Many countries have been working on it as China is leading the race. However, some people are considering the possibility of all the financial regulators together with central banks banning other cryptocurrency coins after releasing their CBDCs.
They will see to the release of a stablecoin and likewise have control over monetary policies without disturbance. While commenting on this, Williams said the USD has several new enemies: economic shots coming from China, the Middle East, and Russia. Hence, he thinks that regulators will do their best to govern the space and will eventually become a part of the cryptocurrency revolution.