However, future guidelines related to cryptomontages remain uncertain.
Regulatory activity has emerged at many levels in the crypto space this year. Government agencies have provided clarity, executed legal actions, and discussed new measures. Such regulations have had a broad impact on the industry, in part affecting the large players entering the sector, according to METACO’s vice president of sales and business development, Seamus Donoghue.
„Regulatory barriers for institutions have been decreasing globally by 2020, and we expect that to continue in 2021,“ Donoghue told Cointelegraph. In 2020, the crypto space has welcomed a developing trend of traditional finance giants buying Bitcoin Era (BTC). MicroStrategy, MassMutual and Square are just three examples.
However, some of these actions pose a threat to the industry. One rumor includes that U.S. Treasury Secretary Steven Mnuchin may essentially put a ban or tracking requirement on personal cryptostratagers before leaving office later this year.
„There have been concerns about serious new last-minute regulations on Mnuchin’s departure from the Treasury, and the recently announced STABLE Act seems to be losing all the value proposition that decentralized finance can deliver to the unbanked,“ Donoghue said. „These regulatory ‚dark clouds‘ remain a short-term concern.
A few weeks ago, a bill calling for regulation of stablecoins came from U.S. Representative Rashida Tlaib. The new bill, called the STABLE Act, would significantly tighten the legal expectations for entities offering stablecoins or related services. The current crypto landscape is a far cry from the early Wild West days of the industry.
„We’ve gone from wondering when eventual regulations for cryptomonies would come,“ ontology ecosystem leader for the Americas Erick Pinos told Cointelegraph, later mentioning the recently proposed Stablecoin Tethering and Bank Licensing Enforcement, or STABLE Act. Pinos also pointed out the rumors about the regulation of cryptomoney wallets that Mnuchin might dictate, adding
„These policies would be a step backwards for the adoption of cryptomoney, and it is more important than ever for the crypto community to proactively educate legislators to introduce better regulations to keep people safe without stifling technological progress.
Imposing restrictions on crypto wallets runs counter to some of the industry’s core values, such as the ability for users to control their own funds away from centralization.