Blurred regulatory lines leave Bitcoin investors in limbo
- Investors are receiving alarming signals from Congress’s delay in passing key bills to regulate the digital asset industry
- Several bills to regulate the industry were introduced to Congress in 2022
- With the adoption of two landmark laws, the EU has established itself as the market leader when it comes to regulation
Regulation has become necessary as the virtual currency market expands, and several nations have already begun the process of passing laws to regulate the industry.
In recent months, the Securities and Exchange Commission (SEC) and other organizations have stepped up efforts to protect market investors.
The US has been at the center of crypto regulation. Since Congress does not have a specific regulatory framework, many people have believed that the SEC’s actions are like the enforcement of other financial laws.
Getting any legislation through both houses is going to be a difficult task – Perianne Boring
Project and fundraising guidelines remain in flux as investors, users and managers of digital assets await the regulatory framework.
Numerous industry participants have given up hope for clearer industry regulation as lawmakers continue to focus on the midterm elections. As a result, a number of bipartisan bills have been stalled.
Due to the unique nature of digital assets, the cryptocurrency industry has advocated for new laws rather than being lumped into the same category as other financial laws.
Because many people worry that digital assets will one day be seen as securities if the status quo is maintained, the SEC has regulated the industry in accordance with current financial laws, which many consider a roadblock to the sector’s progress.
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Regulation takes shape globally
While Congress in the United States struggles to establish a regulatory framework, other nations are passing laws that appear to favor the industry, with few still imposing restrictions.
After the Terra blockchain went down earlier this year, a number of countries, including the United States, are considering banning algorithmic stablecoins, insisting they must be backed by fiat, among other things.
In an effort to achieve uniformity and balance in the governance of digital assets across Europe, the European Union (EU) has prioritized cryptocurrency regulation as one of its top priorities. The EU’s landmark Markets in Crypto-Assets law, which aims to bring digital assets under institutional control across member states, has been passed.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
