Share this article
Defining Cryptocurrency Regulation Important for the Industry to Grow: Morgan Stanley
Disagreement on new legislation would be negative and lead to an extended period of uncertainty, the bank said.
By Will Canny
Updated May 11, 2023, 4:50 p.m. Published May 25, 2022, 2:10 p.m.
Make us preferred on Google
A united government may make it easier for new crypto laws to be agreed upon, and to “follow the spirit of Biden’s executive order” in keeping the U.S. at the vanguard of innovation, Morgan Stanley (MS) said in a report Wednesday looking at the implications of midterm elections for the cryptocurrency sector.
According to the bank’s public policy analysts, legislation concerning tech regulation, cryptocurrency, pricing of prescription drugs, tax increases and China competition will have varying chances of passage by the end of 2023, depending on the outcome of the November elections.
STORY CONTINUES BELOW
Defining regulation for digital assets is important for the industry to grow, especially in relation to stablecoins, crypto products, institutional ownership of crypto, and the possibility of a central bank digital currency (CBDC), said the report authors.
An “extended period of uncertainty” on new legislation – as government agencies such as the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and others fight for regulatory turf – would be a negative for the crypto industry, they added.
Policy makers in both the Democratic and Republican camps have shown frustration with current crypto regulation, arguing that stricter government oversight is needed to address a number of concerns, especially around consumer protection, the note says.
The cryptocurrency industry is having more influence on political views on both sides, with the Morgan Stanley report noting a large ramp up in lobbying spending last year.
Read more: Morgan Stanley Says US Could Regulate Stablecoin Issuers Like Banks
Lebih untuk Anda
U.S. DOJ hits Paxful for $4 million in case tied to illegal sex work, money laundering
The crypto platform's penalty was sharply reduced due to its ability to pay, according to U.S. authorities.
Yang perlu diketahui:
- The U.S. Department of Justice won a $4 million penalty from former crypto platform Paxful in a sentence tied to the dodging of money-laundering laws.
- The amount was reduced from an original amount of $112 million by prosecutors after determining the business couldn't pay that much, the DOJ said.
Top Stories
