Keep Up To Date With The Latest Financial Regulations KNOW MORE

8th March 2022

 

According to Aaron Klein, a senior fellow in economic studies at the Brookings Institution who focuses on financial technology and regulation, the new regulation has the potential to protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy. However, he believes that future regulations must find the proper balance. More regulation could mean more stability in a notoriously volatile crypto market and that is what regulators are aiming for. 

 

Nonetheless, many cryptocurrency enthusiasts are strongly opposed to further regulations. They argue that it would stifle innovation and is incompatible with the spirit of cryptocurrency, which emphasizes decentralization at its core. 

 

While the increase in public usage of cryptocurrency in 2021 sparked a long-running discussion over the government's role in this highly unregulated industry, clear laws are still in the works. While hundreds of tokens and digital currencies are created, and new firms and platforms arise to help store and exchange them, the sector has been left in the dark. Recent exchanges on Capitol Hill indicate that it is not a matter of if, but of when, more regulation will be implemented. Late last year, President Biden incorporated new crypto legislation about taxation into the $1.2 trillion bipartisan infrastructure plan. In addition, the Federal Reserve is considering establishing digital money in the United States.

 

The crypto regulations are good for investors due to following reasons:

  1. More stability in the market
  2. Increase in investor protection and confidence
  3. Safer crypto ecosystem

To be sure, new regulations may restrict the rise of people seeking to make a fast buck by forecasting the next coin to fall to the moon. But this is good news for long-term investors.

 

Source: Time.com

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