The year 2022 will be filled with activity and regulatory regulation on the cryptocurrency front. This time around, the Federal Deposit Insurance Corporation (FDIC) announced that cryptocurrency risk assessment is a priority for 2022.
The FDIC is concerned about the impact of cryptocurrencies on the financial system
Explaining the need to assess the risks associated with cryptocurrencies, the FDIC stated:
"The rapid introduction of a variety of crypto-assets or digital asset products into the financial system could pose significant security and soundness and risks to the financial system."
For this reason, FDIC believes federal banking agencies should evaluate the "extent to which banking organizations can safely engage in crypto-asset related activities."
Of course, the FDIC isn't the only regulator that's concerned about the potential impact of the rapid spread of cryptocurrency-related businesses. On February 15th, the US Senate will discuss stablecoins like Tether or USD Coin and their impact on financial markets.
Is regulatory activity good for cryptocurrencies?
Nì. Whether this year's regulatory activity will negatively impact cryptocurrencies remains to be seen. At first glance, the more obstacles and more controls for cryptocurrency projects will put pressure on the speed of their development.
However, increased regulatory activity signals that cryptocurrencies have gained sufficient adoption and are poised to find their place in the traditional financial system.
One thing is certain: traders who trade on safe and reliable platforms such as Bitcoin Pro, they will have to keep an eye on the words and actions of the regulators. This is because they could have a significant impact on the crypto markets in the short and long term.
I would also like to point out that the market has become numb to regulatory news in recent weeks. Instead, traders focused on overall risk appetite, which is understandable given concerns about inflation and rising Treasury yields.
The leading coins, Bitcoin and Ethereum, have gained a lot of ground in the past few days, and the cryptocurrency markets are trying to establish an upward trend after the strong pullback.
Most likely, leading cryptocurrencies will remain immune from regulatory news in the coming days as traders focus on the potential continuation of the current rebound.
And what do you think of a regulation of the cryptocurrency market. Can it be good or bad? Let us know in the comments section below.
