Field believes that to improve the current tensions between crypto idealism and regulation , easy wins can be achieved . For him , “ the easiest points are at the interface with banking , and particularly with stablecoins ”.
“ Ensuring that stablecoins are adequately collateralised and avoiding monopolies will ensure money doesn ’ t leak from the system . Next , the exchanges need to be held to the highest standards of fair play ,” he adds .
“ Finally , attention needs to be paid to healthy fragmentation . A healthy system can self-regulate , but only if the dice aren ’ t loaded from the start .”
Meanwhile , Tucker-Feltham reminds us of the Markets in Crypto Assets ( MiCA ) framework , calling it the benchmark from which other markets will judge broadranging crypto regulations .
He notes : “ Across the Atlantic , the US is likely to be keeping a close eye on how the MiCA and TFR frameworks are implemented , as similar versions are likely to be put in place there if they prove to be successful in Europe .
“ Following Brexit , the UK has the freedom to undertake its own in-depth look at these trust issues , rather than adopting the EU-wide approach and HM Treasury this year released a consultation paper that placed the importance of investor safety at its core .”
However , while it appears inevitable the future may hold stricter regulations . “ Clarity , transparency and enforcement of those rules are paramount ,” Heibel warns .
“ History proves it : in the 1930s , the US curtailed gold possession , leading many to hoard even more . Overly stringent rules might just exacerbate current challenges rather than resolve them .”
126 December 2023