The news: The crypto market shakeup has sparked increasing conversation around how to regulate digital assets. Regulators across Europe and the US held meetings and announced proposals last week. Here are the outcomes.
The US: On Thursday, the President’s Working Group (PWG), which includes the heads of the Treasury, the Federal Reserve, and the Securities and Exchange Commission (SEC), met to discuss stablecoins.
The EU: The Basel Committee set forth proposals last week that modify the two categories in which digital assets are classified.
EU policymakers also made headway on new anti-money laundering (AML) regulations and the Markets in Crypto-Assets (MiCA) proposal last week.
The UK: The Financial Conduct Authority (FCA) released new data last week regarding the approval of crypto firms for operation in the UK.
The big takeaway: Regulators have been hemming and hawing on reining in the crypto “wild west”. But the recent rout in the crypto markets has spurred policymakers into action. As they finally make moves toward regulation, they should consider working together globally to strengthen the safeguards around vulnerable aspects, like AML and customer verification.