Crypto regulation has made great strides this year, but according to Seamus Donoghue, an executive at METACO, there is still a lot of uncertainty
Regulators have been in dialogue with the crypto world at multiple levels this year. Government agencies have provided clarity, enforced regulations and discussed new actions. According to Seamus Donoghue, vice-president of sales and business development at METACO, this regulation has had a broad impact on the industry, in part by influencing large players entering the sector.
Donoghue told Cointelegraph:
„Regulatory barriers for institutions decreased globally in 2020, and we expect the trend to continue in 2021.“
In 2020, the crypto world welcomed the entry of mainstream financial giants into the sector: MicroStrategy, MassMutual and Square are just three examples.
Some regulatory impositions, however, pose a threat to the industry. According to some rumours, outgoing US Treasury Secretary Steven Mnuchin may ban self-custodian wallets or impose tracking requirements before the end of the year.
„There have been strong concerns about the new and burdensome regulations proposed at the last minute by Treasury Secretary Mnuchin, and the recently announced STABLE Act appears to fail to recognise the immense value that decentralised finance could provide to those without access to banking services. These regulations remain worrisome in the short term.“
A few weeks ago, Congresswoman Rashida Tlaib introduced a new bill to regulate stablecoins, called the STABLE Act, which would significantly tighten the requirements imposed on companies offering stablecoins or related services.
Erick Pinos, ecosystem lead for the Americas at Ontology, told Cointelegraph: „We’re past the stage where we were wondering when crypto regulation was going to come. He then cited the recent STABLE Act and rumours of possible moves by Secretary Mnuchin:
„These choices would be a step backwards for cryptocurrency adoption, and it’s so important for the community to actively advocate to policymakers so that better regulations are put in place to keep people safe without stifling technological progress.“
Placing restrictions on crypto wallets flies in the face of some of the industry’s most important values, such as the ability of users to control their own funds without any central entity.