![]() ![]() For those that are used in payments services-though few, if any, currently are-consumers must be provided avenues to challenge errors. For those crypto assets that are investments or collectibles, investors must be protected from fraud, market manipulation, and theft. No matter what they are, however, robust federal regulation is necessary to protect investors, consumers, and the financial system. As with many assets and depending on the context and how they are used, they may be securities, commodities, collectibles, payments, and more. 6 Rather, the debate is about how they are or should be regulated.Ĭrypto assets cannot be easily pigeonholed into one asset class. ![]() 5 With a collective market capitalization peak of $2.9 trillion in November 2021, there is little reasonable debate over whether crypto assets should be federally regulated. 4 Advocates of these assets argue that because the financial laws are “behind the times” and based on “outdated principle,” Congress must act to “oster innovation,” “roaden access,” and provide “egulatory clarity” to these products. 3ĭespite the recency of this experience, Congress is again being asked to exempt novel financial products-crypto assets such as cryptocurrencies-from existing statutes. futures markets and provides greater legal certainty.” 2 Yet immediately, these contracts were used for speculation, and the derivatives markets septupled in size only to collapse fewer than eight years later, plunging the global economy into the most severe financial crisis in nearly a century. When Congress enacted the Commodity Futures Modernization Act in December 2000, it exempted a novel financial product-financial derivatives contracts-from “utdated statutes.” 1 With the goals of “promoting financial innovation” and bringing derivatives regulations “into the new century,” Congress declared that the law “modernizes the regulatory structure of the U.S.
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