From National Threat to Opportunity, How Regulation is Changing With Crypto.

Research and polls show that even in the worst crypto winters, crypto enthusiasts are still enthusiastic.

Positive public opinion continues to be positive about Bitcoin and other cryptocurrencies. According to polls by The Ascent in May 2022, crypto may become an important political force.

Analysis from a StarkWave survey in March 2022 found that 53% of American respondents believe crypto will be ‘the future of finance.’ Within the 25-34 age range, this figure swelled to 68%.

Haun Ventures’ late September report found similar sentiment despite the bear market for 2022. The poll found that 72% of the crypto-holders who resided in four of America’s major cities claimed to have digital assets. “they want an economic system that is more democratized, fair, and works for more people.”

Notably – Haun Ventures wrote, “voters are less likely to support candidates perceived as standing in the way of a decentralized internet.” This is notable because cryptos such as Ethereum and stablecoins are key drivers of DeFi.

Surprisingly, national governments may not fare well as crypto becomes more popular. For example, Colombia’s newly-minted President, Gustavo Petro, explained in 2021 how “virtual currency is pure information and therefore energy.”

French regulators approved Binance’s crypto exchange May 2022, much to the fury of the European Parliament.

Are the U.S.A and Crypto Regulation The World’s Leaders?

It is possible that some national governments are looking at the United States to learn how to manage cryptocurrencies. Two U.S. senators have announced the Responsible Financial Innovation Act in June 2022. Two U.S. Senators have announced the Responsible Financial innovation Act (in June 2022), which includes a lengthy list of regulations for crypto and addresses lingering concerns about the sector.

The legislation came just a couple of months after President Joe Biden announced a first-of-its-kind crypto executive order, spearheading a ‘whole government approach’ towards regulation.

The White House also acknowledged that crypto is here to stay in a accompanying factsheet “…digital assets can also provide opportunities for American innovation and competitiveness and promote financial inclusion.” The September 2022 framework was more complete. This marked a bustling Fall 2022 for crypto activity in Washington, D.C.

Marsha Blackburn, Senator Cynthia Lummis, and Cynthia Lummis, revised the Cybersecurity information Sharing Act. If passed, it would open up new opportunities for crypto-focused firms to report cybersecurity threats directly to government agencies.

Around the same time, Senator Bill Hagerty introduced the Digital Trading Clarity Act of 2022, designed to help cover crypto exchanges from “certain” SEC enforcement actions.

The topic of crypto regulation is a long-standing controversy. Many argue that clarity is necessary to attract more people to this space, and make the digital asset market a stronger economic engine.

How regulation could be the biggest rocket fuel for crypto world

Aaron Klein, Brookings Institution Senior Fellow asserts that crypto regulatory policy that is balanced can be beneficial for long-term investors and help to reduce fraud.

Edward Moya (ONANA Senior Market Analyst) argued that crypto’s overall market cap could be doubled if there is successful regulation.

The United Arab Emirates and the Philippines have already worked to pass legislation that provides apparent regulatory oversight – ushering in opportunities for the establishment of ‘ecozones’ where blockchain and crypto-focused entities could set up and experiment in a business-friendly environment.

Due to the cross-border nature cryptocurrencies, any solid regulatory approach must be cohesion among governments, public officials, industry professionals and crypto experts.

Entities like the P3 Network continue to work towards ‘addressing the crypto question’ by unifying public and private sector officials together to understand how disruptive technology can support their goals of stable grids.

P3 Network is made up of industry professionals like Solidus Labs (IOHK) and Prime Trust. The roundtables are regional and include access to a U.S. Congressional Technological Advisory Group. This group provides advice to companies, nations, and committees looking for investment opportunities via P3 Captial venture arm.

Visit the P3 Network site to learn more about this Miami-based platform for thought leadership.

 

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