Cryptocurrencies Face Tough Choice: Decentralization or Regulation
CryptoNewsTerminal Staff24 May, 2024
Cryptocurrencies Face Tough Choice: Decentralization or Regulation
Cryptocurrency market analyst Jamie Coutts of Bloomberg Intelligence stated that if the Financial Innovation and Technology (FIT21) Act, which has passed the House of Representatives, is not vetoed by US President Joe Biden, then cryptocurrencies (which are not classified as commodities or securities) will have to choose between pursuing decentralization or facing regulation as securities. Given that many protocols claim to be decentralized but are in truth centralized, this could lead to selling pressure on many cryptocurrencies going forward. Earlier, the US House of Representatives passed the FIT21 bill. FIT21 aims to give the CFTC the authority to regulate the cryptocurrency market and classify 70% of all cryptocurrencies as commodities, and it is set to go through the Senate voting process.
