As cryptocurrency adoption gains traction in the US, regulators are tightening standards around crypto reporting requirements and trading rules. However, experts suggest that some regulators may lack a comprehensive understanding of digital assets, leading to stringent restrictions.
The Need for Collaboration
Blake Benthall, founder of the crypto compliance startup Fathom(x), emphasized the importance of companies specializing in crypto compliance participating in the regulatory process. According to Benthall, these companies can assist regulators in better understanding crypto transactions to avoid overly strict rules.
Crypto Companies Taking Action
Vincent D’Agostino, a former FBI agent, highlighted the ongoing regulatory confusion surrounding cryptocurrency. He noticed that many of his colleagues were interested in Bitcoin but could quickly label emerging technologies without fully understanding them.
Challenges and Issues
Despite the efforts of crypto companies in compliance, challenges remain. Noah Perlman, Binance’s chief compliance officer, emphasized the need to dispel outdated expectations about the crypto industry while balancing regulatory concerns.
Both regulators and crypto companies must find a balance between innovation and safety by working together to create realistic and effective compliance rules.
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