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- Digital currencies are centrally regulated and run on public distributed ledger technology that can be accessed throughout the world with the necessary software
- Regulations will help investors gains confidence in cryptocurrencies and allow them to invest without any concerns
- Authorities across the world plan to implement norms and policies to regulate the cryptocurrency market
BlockFi CEO Zac Prince has stated that regulators taking interest in cryptocurrencies is a positive sign for the digital ecosystem. It will help build trust, erase security concerns and invite new entrants to invest in cryptocurrencies.
The Biden administration has kept a close watch over cryptocurrencies with recently announcing that transactions above $10000 need to be reported to the IRS. Moreover, new reporting regulations have also been introduced to increase transparency among various stakeholders in the ecosystem.
Discussions took place with the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFPB) that sets the tone for a mediation. Industry experts still believe that regulations will hurt digital currencies especially in the USA after recent sanctions imposed by China have made companies look at the West.
Meeting with authorities and the Senate to ring in a new culture
Mild regulations will establish an even playing field between regulators and investors. Scams and fake schemes have rocked the cryptocurrency market since its inception and authorities plan to bring an end to such scrupulous activities.
Zac looks forward to the precautionary measures to be announced by the SEC as the United States Senator Elizabeth Warren stated a fact that the cryptocurrency market is evolving rapidly and it needs the correct guidance.
The cryptocurrency community will be relieved once a country like the US places various rules over the market as it will help build trust and confidence among investors. Other countries may rapidly implement the policies to safeguard investor sentiments.
Senate Banking Committee provides insight
The heated discussions about a central bank digital currency program in the US are underway as Bitcoin drew most of the lawmakers attention.Warren claimed that digital currencies need to be accepted everywhere combined with transparency and security of transactions.
The recent market drop of over 40% in Bitcoin has irked lawmakers as it will be volatile for the financial ecosystem if adopted as a legal tender. Furthermore, the Subcommittee on Economic Policy is poised to hold hearings for successful implementation of a CBDC program.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
