Cryptocurrency regulation refers to legal and policy measures that governments use to define how digital assets are issued, traded, stored, and integrated into financial systems. These policies can range from comprehensive frameworks to restrictive restrictions and outright bans, and they continue to evolve as lawmakers respond to technological advances and market risks. Proponents of cryptocurrency regulation argue that such measures can bolster investor protections, deter illegal activity, and foster greater market legitimacy. Critics, however, argue that extensive regulations can increase the cost of holding and trading digital assets, potentially diminishing their price performance.
In the United States, a series of high-profile bills have recently advanced in Congress, including the GENIUS Act and the CLARITY Act. Both of these efforts seek to establish clearer rules for regulating stablecoins and digital assets. In particular, they emphasize the role of the CFTC in overseeing the market and focus on enhancing transparency and accountability through public disclosures and enforcement actions.
Moreover, the Biden administration has launched the Crypto Task Force to help coordinate federal agencies and encourage responsible innovation in the space. Specifically, the task force will identify and recommend practical policy measures that address key issues in the area of crypto regulation.
Conti-Brown, for example, has called for new rules from banking and securities regulators to close gaps in existing regulations that allow many crypto activities to slip through the cracks. Cecchetti, on the other hand, opposes regulation, saying it would confer legitimacy on an unproven technology and that existing laws against fraud should suffice.