Does NYT Article Signal US Crypto Regulations?
An article in the New York Times explaining cryptocurrency is being seen as an indication that crypto regulation is on its way in the United States.
The explainer looked at stable coins and suggested that regulatory control might be “the most important conversation in Washington financial circles this year.”
The stability and use of stablecoins has been questioned, despite the value being linked to government currencies, chiefly the US dollar.
Regulation Could Add Comfort
While they act as a bridge between cryptocurrency and the traditional financial world, regulation could add comfort to investors and encourage wider use. It could also, of course, be an attempt to restrict the growth of crypto.
Mainstream media has previously reported on the question of regulating stablecoins, but the appearance of this article in the New York Times has caused a stir. Seen as a newspaper of record with serious contacts in Washington DC, the story has prompted commentators to see it as an indication of something on the horizon.
While some see the explainer article as near-confirmation that regulation of stablecoins is coming, there is still the questions of who will regulate, in what form and how much regulation will there be?
Helpfully, the New York Times outlines likely options for regulators.
A Risk To The System
These includes, designating them as a risk to the system, calling them securities, potentially making them subject to SEC regulation and treating them as money market and mutual funds.
The articles adds that regulators could treat stablecoins like banks, under the regulatory oversight of the Office of the Comptroller of Currency, or even issue a competing Central Bank Digital Currency (CBDC).
The New York Times articles does observe, however, that US regulators cannot go it alone in corralling stablecoins. International cooperation would be needed, and possible international regulation in 2023 is mooted.