The crypto industry could surge in 2022 due to the regulations of the sector but also the regulation of stablecoins so let’s read more in today’s crypto latest news.
One of the biggest concerns about the US and international regulators was, of course, the crypto industry. A decent regulatory framework could propel the industry to new highs in 2022. This year could bring more regulatory clarity especially in the United States, which will pave the way for greater crypto adoption. At the forefront of this legislation will be stablecoins as they facilitate direct trading and surged in value over the past year or two.
The anti-crypto Senators in the US slammed stablecoins because they see it as a risk to the economy. One even said that they are bringing the shadiest parts of the crypto world. This view is misinformed and extreme as most policymakers agree that some form of regulation is necessary. There are plenty of issues that lawmakers need to address to regulate stablecoins without damping down the innovation. According to reports, there has to be a clear differentiation between stablecoins and the rest of the crypto assets.
Stablecoins should not be connected with other decentralized assets and crypto needs specific regulations and not the same rules that are applied to traditional finance. Monetary competition is a good thing if regulators are able to oversee the financial and technological revolution rather than stifling it. The Paxos CEO Charles Cascarilla warned that the US dollar could lose its status as a world currency reserve if CBCD and regulated stablecoins are approved soon. The report noted that taxes and compliance are the biggest issues. This could all be solved with a decent regulatory framework that will encourage the use of stablecoins and crypto assets rather than constantly labeling them as criminal.
The crypto industry could surge this year because more regulation is expected to be rolled out this year. Stablecoins now comprise a little over 7% of the entire crypto market cap. According to Coingecko, the current combined market cap for stablecoins is $168 billion and there’s about $60 billion in daily trading volume. Tether is the industry leader with 78 billion coins in circulation.
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