Many bitcoin and crypto companies are calling for regulatory clarity that they think will help bring fresh funding and innovation to the burgeoning crypto space.
Securities and Exchange Commission (SEC), has been charged by lawmakers to address their crypto market concerns.Ĭoinbase and Binance, the world's largest crypto exchange by volume that currently doesn't have a fixed headquarters, have both clashed with regulators around the world this year as watchdogs wrestle with how to police the new digital asset class that transcends many traditional systems. This week, San Fransisco-based bitcoin and crypto exchange Coinbase called for the creation of a single dedicated body to regulate the crypto market, arguing existing regulators are too fragmented and U.S. year hitting never-before-seen highs and pushing the crypto market to around $2.5 trillion. The bitcoin price has rocketed many thousands of percent over the last decade, with bitcoin this. It needs to be pursued as a matter of urgency."ĬryptoCodex -A free, daily newsletter for the crypto-curious MORE FROM FORBES Tesla Billionaire Elon Musk Signals Surprise Dogecoin 'Update' Support As The Bitcoin Price Suddenly Surges By Billy Bambrough "When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice," Cunliffe said, adding: "Regulators internationally and in many jurisdictions have begun the work. In May, after the bitcoin price rose to almost $65,000 per bitcoin, the market went into freefall with the bitcoin price losing almost half its value in a matter of days.Ĭunliffe named major banks' expansion into crypto services, the growth of crypto hedge funds, and payment companies looking into allowing people to settle transactions in stablecoins-cryptocurrencies pegged to traditional currency-as indicative of the growing risk.Ĭunliffe, who has played a central role in monitoring cryptocurrencies over recent years as an adviser to the G20’s financial stability board and the Geneva-based Bank of International Settlements, called on regulators to urgently rein in the red-hot market with tough regulations. While the bitcoin price has risen considerably over recent years it remains highly volatile. "As the financial crisis showed us, you don’t have to account for a large proportion of the financial sector to trigger financial stability problems-sub-prime was valued at around $1.2 trillion in 2008."
"You don’t have to account for a large proportion of the financial sector to trigger financial stability problems," Jon Cunliffe said in a speech, pointing to the crypto market growing by "roughly 200% in 2021, from just under $800 billion to $2.3 trillion today."
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