US regulators are scampering to adopt the first major rules on cryptocurrencies, seeking to address worries about scams, hackers, and market manipulation.
There’s been worrying concerns about the huge profits some traditional financial institutions are raking in from cryptocurrency through quasi-banking services.
Regulators also feel a need to avert looming consumers’ risks and potential threats to the financial market.
The Federal Treasury Department and others are keen to address the situation by introducing tighter restrictions.
One week ago, Newbsc reported President Biden’s agenda to impose stringent rules on crypto entities as a way of curbing crypto-related scams. It appears that regulators are about to set the ball rolling by implementing those plans.
New crypto rules will target Stablecoins
A report by Economic Times claims that stablecoins are the major concern for financial watchdogs who believe that such tokens are under-regulated.
The importance of Stablecoins within the crypto space has grown immensely because they are used to hedge against the volatility of the crypto market.
Stablecoins account for nearly 7% of the total crypto economy and US regulators believe there is a need to introduce new crypto rules to tighten the existing regulations guiding them.