The Importance of Keeping Up with Global Trends in Crypto Regulation in the United States

Policymakers should invest in blockchain R&D.

Despite a year of fraud, meltdowns, and layoffs, the end of the cryptocurrency industry is far from nigh. Surviving companies still face stigma from past failures and unfair treatment from US regulators, with the Securities and Exchange Commission (SEC) attacking firms instead of making thoughtful policy. The stakes are high, with blockchain now integral to global commerce, banking, communications, and individual ownership. Regulators in Europe, Japan, Singapore, the UAE, and China, among others, have all implemented or are in the process of introducing permanent regulatory frameworks.

While this means the US is lagging behind, the piece predicts it won't go against the global trend in regulation in the same way that the EU and UK will have compatible regulatory structures. The US's historical success in regulating frontier technologies will ultimately see blockchain frameworks worked out, it concludes. Policymakers should invest in blockchain R&D. Also use the technology they are regulating so they can understand it better. The industry will ultimately become stronger as meaningful regulations are put in place rather than strong-arm tactics. While the US federal government is moving slower than ever when it comes to regulating digital assets, most states have created permanent frameworks for this.