Cryptocurrencies have had a rough ride of late.
Market forces and bad actors have both taken a toll on prices for these digital assets. And now, federal regulators are taking a closer look, especially when it comes to crypto’s interactions with the banking system.
According to a Bloomberg report, federal agencies are “building a wall” between crypto companies and the traditional banking system. As a result, new ventures could be stopped before they can grow, and existing business models could be severely affected. Tech expert Omar Gallaga told Texas Standard that the push to regulate comes on the heels of the FTX meltdown last year.
Highlights from this segment:
– Before the FTX crash, federal officials in both Republican and Democratic administrations had largely stayed away from regulating the crypto industry.
– The SEC and other agencies are likely to consider regulations that resemble those applied to other kinds of securities and financial assets.
– Federal regulators have also indicated they will scrutinize the ways banks, which are already highly regulated, interact with crypto businesses.