Although a panel of state and federal financial regulators has identified three areas in which new laws could help plug holes in U.S. cryptocurrencies rules, widely seen as a necessary precursor to broader adoption of blockchain-based finance, Congress may not be able to act on them any time soon. That could leave the market overseen by regulators competing for jurisdiction, encouraging the crypto industry to move offshore. “New technology often requires a fresh look at regulation. It’s clear that we need a regulatory framework for stablecoin and crypto spot markets,” Kristin Smith, executive director of the Blockchain Association, tells Forbes. She is more optimistic than other observers about the outlook for rapid progress “Legislation is moving fast in Congress, and it’s possible we will see something before the end of the year. If not, we expect quick action in 2023.” With mid-term elections looming next month, however, it is hard to see how legislation could be passed in 2022. The three areas identified in an Oct. 3 report by the federal Financial Stability Oversight Council, created after the Great Recession that began in 2007, are:
- Spot trading of crypto assets not considered securities
- Regulatory arbitrage, where market participants seek to take advantage of different rules among agencies
- Lack of traditional intermediaries, such as brokers and clearinghouses, in transactions involving retail investors
Full story : Crypto Rule Suggestions From U.S. Panel Seek To Plug Holes.
