2021 has almost come to an end. At this time, digital finance is a major concern for several governments across the world. 2021 featured some developments in crypto regulation. But, it is possible to distill major trends that have become evident during the past 12 months.
The concise version of the most recent “Law Decoded” newsletter is highlighted below.
The United States Congress Knows About Crypto
In the U.S, crypto regulation is no longer dominated by unelected officials sitting on different financial regulatory commissions. In 2021, lawmakers organized more congressional hearings on cryptocurrencies than in past years. It should be known that some people in Congress aren’t a Bitcoin Buff.
Authoritarians Prefer the Hardline
Another matter of emergence is how different political systems approach crypto, based on their stance on the liberal-authoritarian continuum. Apparently, all agents of power try to maximize the control they have over the financial system and payment systems more broadly.
China’s approach to crypto and its prohibition of cryptocurrency mining and trading is the end of the policy palette. The option is being open to financial innovation and enjoying the advantages of such openness.
Unparalleled Legal Exposure Rates
First, El Salvador became the first crypto nation to approve Bitcoin as a legal tender. Next, the U. S Securities and Exchange Commission eventually permitted a Bitcoin exchange-traded fund to the market. This has led more people to use crypto for investment and payment legally.
With this increased level of exposure and awareness, it becomes more difficult for policymakers to ignore the reality where Bitcoin and other cryptocurrencies become present in the world.
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.