Cryptocurrency regulation has been among the burning issues regulators in almost every country that allows crypto transactions to struggle with, and the United States is no exception.
There have been reports that regulators in the U.S. need to join hands together and work toward achieving a common goal: regulating the crypto industry to make it efficient and functional.
Sam Bankman-Fried, the CEO of FTX crypto exchange firm, disclosed that regulators in the financial sector need to work together to regulate the crypto market actively.
Bankman-Fried noted in an interview with Blockworks that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) working together would bolster the effort to make the cryptocurrency market more organized and orderly, thus making it easier to make any positive impact with regards to policies for the betterment of the entire industry.
Regulations Will Boost Crypto Adoption
Bankman-Fried believes that if there were robust guidelines in place that would oversee the running of the crypto space, it would boost the large-scale adoption of digital assets in the long run.
He further added that if both government agencies made a compromise on who is responsible for the licensing of crypto assets and who is in charge of overseeing the operation of the industry, significant progress would have been made, and that would have solved about 70% of the mitigating problems.
Despite the near absence of regulation in the cryptocurrency space, the FTX CEO believes considerable progress has been made over the past couple of months. Bankman-Fried opined that the entire industry is not in a place where federal presence has been felt.
Still, the industry is in a period where numerous proposals have been made about the way forward. That would be implemented soon because the decision-makers have considered it.
The Challenging Crypto Regulation
Not just in the United States alone, regulators in multiple countries have been grappling with the best way to oversee the operation of cryptocurrency and what needs to be considered before a comprehensive and total guideline is implemented.
Understanding the industry and what it stands for is key to making a holistic regulatory framework. This has been identified as one of the stumbling blocks toward achieving widespread regulations. The agencies responsible for not being well conversant with the intricacies of digital assets need to be studied.
However, the industry has recorded unprecedented growth over the past couple of years, notwithstanding the difficulties. For the first time, the market capitalization is reported to have reached $3 trillion last November. The growth has been rapid, which is not surprising.
Meanwhile, the market is currently in a bearish situation that began over the last six months, with the market cap also declining to $1.7 trillion.
Experts argue that the bearish trend is not a barrier to the continued progress of digital currencies. The market would bounce back alongside the price of cryptocurrencies in the coming days.