“Tougher Rules are Coming for bitcoin and other Cryptocurrencies. Here’s What to Know,” written by David Gura (2021) for NPR, explains that Gary Gensler, the head of the Security and Exchange Commission (SEC), has a concern about cryptocurrency’s risks. He intends to enact regulations to protect investors. Because cryptocurrency markets have developed rapidly, lawmakers have not yet implemented regulation frameworks. Policymakers are now actively considering what laws to pass.
Even though millions of people actively trade Bitcoin, other cryptocurrencies, and related assets, no clear trading rules or regulations exist. This lack of regulation creates complications for companies in the cryptocurrency industry as well as for investors. Effective law requires the adoption of standardized definitions for cryptocurrency and related terms. Clear cryptocurrency definitions are necessary to understand what regulation body has authority over cryptocurrency assets. Both the SEC and the Commodity Futures Trading Commission (CFTC) have looked to regulate cryptocurrencies with existing laws. The existing rules handle other asset types such as bonds and stocks. Adapting these rules to this new asset class is not easy. Until new cryptocurrency-specific regulations become law, regulators expect to continue to adapt existing law (Gura, 2021).
Gensler asked Congress to grant regulators authority to compose new regulations that are made specifically for cryptocurrencies. New regulation proposals are forthcoming. These regulations will attempt to protect against market manipulation and other risks. The cryptocurrency industry appears to favor new rules as long as they are not too stringent. The effect that coming regulations on cryptocurrencies is not yet clear. The inventors of Cryptocurrencies intended them to be decentralized and uncontrolled by a central banking authority or government. Government regulations counter this original intent and will cause the original cryptocurrency structure to evolve. The final result of how this cryptocurrency evolution ends is not yet known (Gura, 2021).
With regards to this cryptocurrency, people need to think hard if they want to dive into getting started with it because if Congress is taking long to decide, then what does that tell you. You want to be sure that you are making the right decision, and you will see in the future that Bitcoin and other cryptocurrencies are going to be used and anything that has to do with money will be non-existent. If cryptocurrency is so widely talked about how come they haven’t really put it into action or done anything to make headway with it?
References
Gura, D. (2021, August 20). Tougher rules are coming for bitcoin and other cryptocurrencies.
Here’s what to know. NPR. https://www.npr.org/2021/08/20/1029436872/tougher-rules-are-coming-for-bitcoin-and-other-cryptocurrencies-heres-what-to-kn
