Crypto regulation now extra institution-friendly, explains METACO boss
This year, regulatory activity in the field of crypto has surfaced at many levels. Government agencies have clarified and enforced and discussed new measures. According to Seamus Donoghue, vice president of sales and business development at METACO, such regulation will have far-reaching implications for the industry, in part affecting the big players entering the sector.
"Regulatory barriers to institutions worldwide decreased in 2020 and we expect to continue to do so through 2021," Donoghue told Cointelegraph. In 2020, the crypto space welcomed an evolving trend for gigantic mainstream financial giants to buy Bitcoin (BTC). MicroStrategy, MassMutual, and Square are just three examples.
However, some regulatory measures pose a threat to the industry. Rumor has it that US Treasury Secretary Steven Mnuchin could essentially ban or track self-managed crypto wallets on his way out of office this year.
"There have been concerns about new, persistent, last-minute regulations on exits from Mnuchin's Treasury, and the recently announced STABLE bill seems to lack all of the value proposition that decentralized finance can deliver for non-banks," Donoghue said. "These regulatory 'dark clouds' remain short-term concerns."
A few weeks ago US representative Rashida Tlaib issued a bill calling for stable coins to be regulated. The new bill, called the STABLE Act, would significantly tighten legal expectations for companies offering stablecoins or related services. The current crypto landscape is a far cry from the early days of the Wild West in the industry.
"We stopped wondering when any crypto regulations would happen," Erick Pinos, head of the ontology ecosystem for America, told Cointelegraph and then mentioned the recently proposed Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act. Pinos also noted the rumors of Mnuchin's regulation of crypto wallets, adding:
"These guidelines would be a step backwards for the adoption of cryptocurrencies, and it is more important than ever that the crypto community proactively educate policy makers on how better regulations are put in place to keep people safe without hindering technological advances . "
Imposing restrictions on crypto wallets goes against some of the most important values in the industry, such as: B. the ability of users to control their own funds outside of centralization.