What Is the Future of Crypto Currency in the United States?

The SEC and CFTC will almost certainly play an essential role in monitoring cryptocurrency exchanges and trading platforms. They will have to cope with market structure difficulties and potential market manipulation. Furthermore, some prominent members of Congress have expressed reservations regarding investor protection. These issues, as well as policing and enforcement, will fall under the purview of the SEC and CFTC. Meanwhile, the CFPB will provide comments and analyze cases involving the use of stablecoins in the United States, which will almost certainly trigger federal consumer financial protection regulations.

While there can be no legal structure for cryptocurrencies, the United States is working to regulate the industry. While not every state has taken similar action, a few have issued warnings. As a result, cryptocurrency regulation has been proposed in California, Nevada, Hawaii, and Maryland. Meanwhile, the state of New York has eased its BitLicense laws to let enterprises operate there.

Despite the fact that Bitcoin is the most well-known cryptocurrency, the sector has expanded to include decentralized finance platforms, tokens, and applications. The cryptocurrency sector is now valued at more than $1.2 trillion and has applications in the financial services industry. There are also stablecoins designed to function like crypto dollars. While many businesses are embracing new technology, it is crucial to remember that there are still hazards connected with deploying digital assets.

While there is a lot of talk about Bitcoin's future, the currency has gone through several cycles of boom and crash. It was priced at around $5,000 in the fall of 2017. It had risen to nearly $20,000 by December. It then fell to less than $6,600. Bitcoin's economic foundations differ significantly from those of other types of assets. Nonetheless, there are reasons to assume that digital currency will one day be worth trillions of dollars.

While the dangers of investing in Bitcoin are minor in comparison to traditional equities and bonds, the growing interest in virtual currency has raised new concerns for investors. Many new products, technology, and financial instruments are fraught with danger. Furthermore, big profits in an unknown investment field can make potential investors less cautious of future investment ideas. This increases the risk of a new asset class.

A bipartisan Senate measure proposing to regulate cryptocurrency has been submitted. The Responsible Financial Innovation Act would necessitate the creation of a new definition for cryptocurrencies. The definition of brokerage would also be expanded to encompass organizations that enable the trading of digital assets. This would enable exchanges to publish all transactions worth more than $10,000 in fair market value. The bill also has bipartisan backing. However, there is a major issue. The Securities and Exchange Commission is not equipped to regulate cryptocurrency.

Some states, though, have already begun to regulate Bitcoin. Ten states, including Hawaii and Maryland, have issued warnings to businesses and individuals interested in participating. New York has recently relaxed its BitLicense restrictions, which were previously considered onerous. While the new legislation may not be sufficient to fully govern cryptocurrency, it can help it develop in the state. The SEC has a long way to go, but loosening restrictions will help ensure bitcoin safety for everyone.

Although the United States has not fully accepted crypto-assets, they are becoming increasingly entwined with the regular financial system. This new financial environment presents regulators with numerous hurdles and complications, and the pace of regulation will define the future of cryptos. The IMF believes that the total market value of cryptos is $2.5 trillion, showing that the underlying technological breakthroughs have a large economic worth. However, the market capitalization may also indicate a frothy environment, indicating that prices are extending beyond reality.

Despite the obstacles to regulating cryptos, public interest in the business is growing. According to a recent Pew Research research, one-fifth of US respondents purchased or sold cryptocurrencies in the previous year. Similarly, according to a recent survey conducted by the New York Digital Investment Group, 46 million Americans possess cryptocurrency. This amount represents around 14% of the total population of the country.