Will 2022 be the year of crypto regulation?
As the cryptocurrency industry evolves into a more mature asset class, calls for regulation of digital assets became stronger last year.
With many larger companies, businesses and even governments reluctant to enter the industry because of volatility, it’s said that regulation for cryptocurrencies will bring peace of mind to the wider markets — perhaps leading to greater investment in the industry.
However, potential regulation could also curb the growth and development of the space, especially if the imposed regulations affect digital assets negatively.
Stablecoin focus
One of the more exciting asset classes in cryptocurrency, stablecoins — which are assets pegged to the value of a denominated currency — have emerged as a frontrunner in real-world adoption and use-cases thanks to their versatility and function as a digital asset.
Unbound by potential volatility thanks to their pegged value, stablecoins such as Tether (USDT) and USD Coin (USDC) have shown that they can be reliable safe-haven assets for users across the crypto space.
Stablecoins such as Tether, USD Coin and Dai have proven invaluable for the growth of the cryptocurrency industry.
Wider digital asset regulation
Quoted by some as a “financial stability concern“, calls for wider regulation of digital assets have come from the very highest levels of economic policy, including the IMF.
With volatility also a concern, regulators will be keen to address the unpredictable nature of digital assets, which can suffer from major price swings.
It’s anticipated that regulation in 2022 will be focused on protecting ‘retail’ consumers from losses via regulating exchanges which have faced the tumultuous task of appeasing governing bodies and authorities.
Read the full article: https://finance.yahoo.com/news/2022-crypto-regulation-163009796.html
