In the aftermath of the meltdown of crypto exchange FTX, it’s almost certain that more regulation will be coming to the crypto industry in 2023. Almost everyone agrees that this new arena needs a comprehensive regulatory framework that clearly outlines the rules of the road for market participants and also protects against bad actors. The only question, of course, is how aggressive U.S. regulators will be when it comes to reining in some of the excesses of the crypto industry. If regulators act too aggressively, it could ruin the crypto rebound. The big question at the heart of nearly every crypto debate is what type of financial asset cryptocurrencies really are. This might sound like a simple question to answer, but it has confounded the industry for years. Are cryptocurrencies a completely new type of asset? Or are cryptos similar to existing assets, such as foreign currencies and securities? If cryptocurrencies are currencies, then they should be regulated by the Commodity Futures Trading Commission, which has regulatory oversight over the derivatives market, including foreign exchange derivatives such as futures, options, and swaps. However, if cryptocurrencies are securities, then they should be regulated by the Securities and Exchange Commission (SEC) under existing securities laws. The SEC has already opined that just about every cryptocurrency — with the possible exception of Bitcoin should be regulated as a security.
Full opinion : Will New Regulation Ruin the Crypto Rebound?
