US regulators aiming for greater legal clarity on crypto exchanges next year

Cryptocurrencies will be in the spotlight next year, just as they have been in recent years, specifically in the US where regulators have outlined plans to get greater clarity on the legality of crypto exchanges.

According to a Bloomberg report (paywall), the Federal Reserve, the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have all registered an interest into understanding the legal standpoints of crypto exchanges.

In fact, the parties have drawn up a roadmap for 2022 (PDF) outlining their focus, with the legal status of transactions top of the agenda.

While the three organisations have earmarked their plans for 2022, it remains unclear just how far reaching this mission for clarity will be, with it potentially including the release of stablecoins, using crypto as loan collateral and even how companies accept and carry cryptocurrencies on their books.

As Engadget notes, the organisations are also looking to see how capital and liquidity standards can be applied to this area for US financial institutions, which in itself might create some volatility given the decentralised natured of digital currencies.

As such, the scope is expansive and given the state of flux that this segment of the market finds itself, we could see this investigative exercise could take some time.

Either way, the crypto industry should be preparing itself for further poking and prodding in the US and if precedents are set, we could see other parts of the world look for legal clarity too. We have already seen India and China take a harsh stance on cryptocurrencies for different reasons, so more countries may follow suit.

For now though, we will need to see what the the Federal Reserve, the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have in mind, and whether a strategy can be iron out by all parties.

 

 

[Image – Photo by Art Rachen on Unsplash]

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Source: htxt.co.za

US regulators aiming for greater legal clarity on crypto exchanges next year