The U.S. is likely to introduce more cryptocurrency regulation. But what form will it take?
Jesse Powell, CEO of crypto exchange Kraken, warned the government might tighten its cryptocurrency rules. In an interview with CNBC this week, he said, “I think there could be some crackdown.” Powell is concerned that increased regulation might hurt cryptocurrencies.
Powell is not the only one who thinks more regulation might be on the horizon. Treasury Secretary Janet Yellen told a February roundtable on financial innovation that she sees the potential and the problems of new digital currencies. “Cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” she said.
And Federal Reserve Chairman Jerome Powell has said cryptocurrencies are speculative and highly volatile. He stressed they’re “not really useful as a store of value, and they’re not backed by anything.”
Regulators worldwide are concerned about the dangers of cryptocurrency, but also aware that overregulation could bring its own risks.
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