FREMONT, CA: Commentators and analysts are predicting the future of the crypto market by taking an outlook towards the next year as 2021 draws to a close. Volatility rules supremacy in the crypto and digital assets space. Regulation is a recurring theme as more institutions are moving into the decentralized finance space.
One must first evaluate and comprehend the global regulatory landscape and how it has changed over the last 12 months in order to estimate the future of regulation in the crypto space. In 2021, there hasn't been a single jurisdiction where crypto regulation hasn't moved and there are a variety of reasons for why this might have happened.
First and foremost, in September 2021, China outlawed all cryptocurrency transactions, therefore making all tokens illegal. This came months after the Chinese government ordered banks to stop facilitating mining. The government is cracking down on a variety of secondary crypto transactions and activities as it promotes the digital yuan, thereby compressing the market and driving crypto entrepreneurs and investors elsewhere. To offer an alternative to these Chinese actors, other nations moved their position because of this.
However, the United States has gradually become more crypto-friendly this year. For instance, as Chinese miners left the country, the Foundry USA has earned the position as the second largest Bitcoin mining pool, which is an indication of the U.S. attitude towards digital assets. A central role in the regulation of digital assets in the U.S., rules, guidance and enforcement actions by other authorities that are now taking shape, is played by the Securities and Exchange Commission (SEC).
All federal regulators such as the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), the Commodity Futures Trading Commission (CFTC), Office of the Comptroller of the Currency (OCC) and Office of Foreign Assets Control (OFAC) are moving forward to regulate crypto in their respective areas of authority.