Those who oversee the traditional financial sector will not allow Bitcoin (BTC) to decline without a fight.
Sheila Warren, chair of the World Economic Forum on Blockchain and Digital Assets, echoed that sentiment, saying that a “dramatic” regulatory round was about to hit Bitcoin and the wider cryptocurrency space. Warren told Bloomberg Thursday:
“We are looking forward to a new round with some dramatic attempts to organize this space. With the increase in activity in these areas, there is a signal to the organizers that there is a growing demand for participation and participation.”
Warren’s comments came hours after Coinbase became the first cryptocurrency exchange to list its shares on the Nasdaq exchange. Besides the meteoric rise in Bitcoin over the past year to new highs of nearly $ 65,000, industry observers had hoped the link between the two would lend new legitimacy to the cryptocurrency space and possibly prompt regulators to relax their itchy fingers on the trigger.
This possibility may remain a reality, especially when you consider the recommended regulatory approach of Securities and Exchange Commissioner Hester Pearce. Pearce recently suggested that crypto projects have a three-year deadline to start before they have to register any token received as collateral – subject to certain conditions.
Among other things, the blockchain network will have to demonstrate that it is decentralized enough by the end of the three-year period to avoid further SEC investigations.
But Warren believes control is inevitable, and suggested that it will only increase as the price of Bitcoin rises further. Warren said the influx of activity fueled by the cryptocurrency boom and entering Coinbase was only the beginning of the process, not the culmination of it.
“Some people think this is the summit, and I think it’s totally wrong,” Warren said.
Rhetoric from government agencies about cryptocurrency regulation tends to focus on consumer protection – a very serious problem in an industry still vulnerable to malicious hacks, shadow scams and costly unintended bugs.
However, the regulatory requirements are driven by the authorities ’natural desire to control the emission and movement of funds within their borders. The free and independent nature of cryptocurrencies poses a serious threat to established monetary systems. Most major economies are already involved in absorbing the impact of cryptocurrency through taxation and regulation, or creating central bank digital currencies that rival and eventually replace them.