Lawmakers worldwide now have an incentive to create legal frameworks around the blockchain and crypto industry. Before, both industries were full of early adopters, enthusiasts, and technologists who understood how blockchain technologies would play a vital role in the world’s future. At the time, the crypto industry was only a few years old, and it was either not on the radar for regulators, or they felt that the sector was too insignificant to spend their resources on. But now, the crypto industry, as well as the industry participants, have changed.
With legacy enterprises entering the industry, lawmakers will prioritize regulating crypto.
With legacy enterprises entering the blockchain and digital currency industry in mass, both industries will inevitably get prioritized by lawmakers. The institutions that we see entering the industry have hundreds of millions of users located around the world, that being said, regulators have more of a motive to create guidelines as opposed to when the blockchain and digital currency sectors had far fewer participants. Crypto regulations in most countries are still in a grey area as regulators actively work on the regulatory framework.
US SEC commissioner calls for clear crypto regulations.
As reported earlier, the Commissioner at the US Securities and Exchange Commission, Hester Peirce, mentioned the urgent need for clear cryptocurrency regulations amid crypto adoption by leading companies like Tesla and Mastercard. During an interview with Reuters, the SEC commissioner praised the involvement of a new generation of investors in financial markets. Peirce mentioned that it was too early to draw policy conclusions from the recent Reddit frenzy in stocks and other cryptocurrency assets. SEC commissioner asked for clear cryptocurrency regulations and to remove the uncertainty regarding digital assets’ status in the US.