Race continues to stop regulators spreading “peanut butter” on the crypto boom: Morning Brief

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Wednesday 10 November 2021

Lots of regulators to chew on, but for cryptocurrencies, the same old list might not do.

On Tuesday, Yahoo Finance joined forces with Decrypt in an effort to highlight all the ways cryptocurrency is now going. There is no shortage of headlines promoting the ways in which cryptocurrencies are capturing the public’s imagination.

Bitcoin (BTC-USD) is trading above $68,000. Memecoins are no joke and more than legitimate investment. Jobs in this sector It is being minted at a frantic pace.

Spot exchange-traded funds (ETFs) and futures are shaping up to be the next hot thing. And Decentralized Finance (DeFi) and Digital Wallets It attracts hordes of small investors, which draws regulators such as the Securities and Exchange Commission (SEC).

even in Real estate participates in the event.

Thus, new products such as flower ETFs and blockchain are creating new digital currencies (Morgan Stanley Recently he hooked up the crypto world with nearly 10,000), what better agency to serve as head of what Securities and Exchange Commission Chairman Gary Gensler calls the “wild west” of financial markets? Should regulators bring decades-old securities laws into an emerging and technologically advanced sector being championed as a financial revolution?

As the regulatory debate crystallizes, there is at least some credibility to the argument made by Ripple executives Ashish Birla to Jennifer Schönberger of Yahoo Finance Tuesday. Birla said clearer regulations would spur industry growth, but cautioned that indiscriminate enforcement of outdated laws could hurt innovation.

“I am not advocating that old regulations and peanut butter be taken to spread on crypto,” he said. “We are calling for clear, updated records of what blockchain and cryptocurrency can do, and it hasn’t been clear until now.”

This topic has a particular resonance, given that Congress is currently considering a whole list of blockchain-related proposals such as Supervision of crypto miners They may act as mediators, stablecoin issuance and Institutions (DeFi) that lend like traditional banks.

Is regulation a help or a hindrance? asked Morgan Stanley analysts in a recent paper.

Depending on the form of regulation, the bank noted, assuming similar to what is currently being discussed in advanced economies, specific regulation could increase the attractiveness of adding cryptocurrency exposure to institutional investors’ portfolios.

As more ETFs enter the market, expect the debate on regulation to take center stage. Grayscale CEO Michael Sonnenchin told Yahoo Finance reporter Brian Cheung on Tuesday that products based on derivatives or real-time pricing have “become somewhat of a political issue.”

He added: “In the past week, we have already seen bipartisan support for the Bitcoin ETF… defending this and ensuring that there is a level playing field between these applications, and that investors really have a choice.”

The more developed the market, the more demanding of critics strict investor protection. This means that more questions will arise about whether the current securities architecture is appropriate for this massive new digital edifice called cryptocurrency.

by Javier E David, editor at Yahoo Finance. follow him in Tweet embed

What are you watching today

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