Regulatory activity has cropped up on many levels in crypto this year. Government agencies have provided clarity and enforcement and discussed new actions. According to METACO’s Vice President for Sales and Business Development, Seamus Donoghue, such regulation has had a major impact on the industry, in part on major players entering the sector.
“Regulatory barriers to institutions are decreasing globally in 2020, and we expect this to continue into 2021,” Donoghue told Cointelegraph. In 2020, the crypto space has welcomed an evolving trend from colossal mainstream financial giants buying Bitcoin (BTC). MicroStrategy, MassMutual and Square serve as just three examples.
However, some regulatory measures pose a threat to the industry. a rumor includes that the U.S. Treasury Secretary, Steven Mnuchin, essentially could set a ban or tracking requirement on self-held crypto wallets heading towards the end of the year.
“There were concerns about new, heavy-handed last-minute regulations of Mnuchin’s Treasury departure and the recently announced STABLE law seems to miss the whole value proposition that decentralized financing can bring to the non-banking,” said Donoghue. “These regulatory ‘dark clouds’ will continue to worry for the near term.”
A few weeks ago a bill calling for stablecoin regulation came from US Representative Rashida Tlaib. The new bill, called the STABLE Act, would significantly tighten legal expectations for entities offering stablecoins or related services. The current crypto landscape is a long way from the early Wild West days of the industry.
“We stopped wondering when the final crypto regulations would come,” Erick Pinos, leader of the Ontology ecosystem for America, told Cointelegraph, then cited the recently proposed Stablecoin Tethering and Bank Licensing Enforcement, or STABLE Act. Pinos also took note of Mnuchin’s crypto wallet regulation rumors, adding:
“These policies would be a step backwards for cryptocurrency adoption, and it is more important than ever for the crypto community to proactively train policymakers so that better regulations are put in place to keep people safe without stifling technological advancements.”
Restrictions on crypto wallets go against some of the most important values in the industry, such as users’ wealth have control over their equity away from centralization.