The Securities and Exchange Commission (SEC) and other agencies have increased their initiatives to safeguard market participants, placing the United States at the forefront of crypto regulation in recent months. As there is no particular regulatory framework by Congress, many have assumed that the SEC’s actions are the enforcement strategy of other financial regulations.
Regulating the virtual currency market as it expands has become essential, and numerous nations have already started the process by passing legislation to do so.
Due to the unique characteristics of digital assets, the cryptocurrency industry has pushed for new regulations rather than having them grouped with existing banking rules. Many see the SEC’s regulation of the market as a hindrance to the sector’s development because they worry that, in the long term, if the status quo holds, digital assets will be seen as securities.
There is still uncertainty around projects and fundraising practices while investors, users, and executives in the digital assets industry wait for the regulatory framework. Many business stakeholders have given up on clearer sector regulation as lawmakers are still focused on the upcoming midterm elections, and numerous bipartisan proposals are still being held up.
The founder of the Chamber of Digital Commerce trading group, Perianne Boring, stated that given the calendar, it would be complicated to pass legislation through both houses- while referring to the upcoming mid-term elections.
Given the calendar, getting any piece of legislation through both houses is going to be a monumental task.
To establish consistency and balance in European digital asset governance, the European Union (EU) has prioritized cryptocurrency legislation at the top of its agenda. The EU has passed the Markets in Crypto-Assets Regulation, significant legislation designed to give all member states institutional authority over digital assets.