The Federal Government Deliberates Cryptocurrency Rules With Sights Set on a Single Regulator

The cryptocurrency industry is abuzz with hype. Regulators are still debating the best way to regulate the space. Some have suggested that the best way to do this is to ignore it completely.

In fact, the SEC, FDIC and even the Commodity Futures Trading Commission are having a hard time keeping up. There is no doubt that the digital asset industry is growing at an astounding rate. Despite this, regulators are not equipped to monitor the space. This is largely due to the fact that many of these entities are small and don’t have the resources to delve into the nitty-gritty. That being said, the best way to manage the risk is to create a regulatory framework that will encapsulate all aspects of the space.

One of the most interesting challenges facing the federal government is the regulatory apparatus which is tasked with overseeing digital assets, especially the crypto craze. To that end, the topdogs are tasked with the task of figuring out which agency should lead the charge. They are also tasked with answering questions such as: which regulatory measures should be incorporated into a single consolidated regulatory framework. Having said that, the FTX saga threw a spanner in the works. It also brought to the fore the need for a regulator to actually implement the regulatory changes that are needed.

The SEC, FDIC and CFTC have not been able to come to a consensus as to which entity should take the lead. As for the crypto slugfest, the aforementioned FTX disaster is just the tip of the iceberg. Nevertheless, the tumultuous months have been a time for reflection and discussion, which has been a good thing as it demonstrates that crypto is no longer a fringe industry. With the aforementioned tumultuous months behind us, it’s time to move forward and put these newfound resources to better use. Whether that means a new set of rules or an overhaul of existing rules will likely depend on the results of the forthcoming reviews.