At a recent panel, blockchain-focused lawyer Joel Telpner highlighted three cryptocurrency regulatory developments people should be waiting for.

Banks and other traditional financial firms used to denigrate Bitcoin and other virtual currencies, but things are definitely different now. Many companies are now getting actively involved in the crypto ecosystem, such as JPMorgan issuing their own stablecoin. Governments are starting to get serious about putting some regulatory restraints upon cryptocurrency, and this ongoing movement towards regulation served as the centerpiece of a recent panel discussion.

Coming to Grips with Future Regulation

The panel, called Token Exchanges: The promise of liquidity, compliance and stability, was held at the offices of Sullivan & Worcester LLP. The panel featured a number of prominent players in the blockchain and cryptocurrency industries and was moderated by Joel Telpner, a partner and Chair Fintech & Blockchain Practice at the law firm.

Telpner started off the panel by discussing the current climate in the cryptocurrency ecosystem as well as how better things will come as a result, saying:

We’re all collectively paying the price at the moment, but it’s important to keep in mind that this is not a bad thing. Most all new forms of technology have experienced a high level of unreasonable exuberance in the early days and after that period, business becomes much more stable. We’re at the end of the beginning. This is about moving from the wild, wild, west to a more mature level of the digital currency space and tokens. Those that remain have to work hard and understand that success will come from fundamental principles in business and governance, and it will certainly pay off.

Three Upcoming Cryptocurrency Regulatory Developments

The meat of Telpner’s contribution to the panel was his thoughts on how regulation will come to impact the cryptocurrency marketplace. He cited three developments that cryptocurrency enthusiasts should pay attention to.

The first development is that the U.S. government is actually not as far behind in coming up with cryptocurrency regulations as most people think. Telpner discussed how the SEC commissioner is looking to put into place greater regulatory clarity in the cryptocurrency/blockchain space. He expects the SEC to announce what virtual currencies are tokens and which are not sooner rather than later.

The second regulatory development features the Commodity Future Trading Commission (CFTC). Telpner maintains that a lot of cryptocurrencies are actually commodities, so the CFTC will eventually make decisions on how best to regulate such coins that are backed by commodities.

The third development Telpner discusses is regulating stablecoins. He cites the opinions of many industry experts that say stablecoins are neither commodities or securities. Telpner believes that government bodies will begin focusing on how best to regulate stablecoins, which could differ from what the SEC and CFTC put into place.

In the eyes of Telpner, regulations are a good thing that will increase adoption and use. He notes that more tech companies and financial institutions are collaborating on cryptocurrency and blockchain technology. Overall, he has a very positive outlook on crypto’s future, saying:

Watch for more real business plans and insight and more startups with good old-fashioned management teams with true structure starting this year and beyond in the digital currency space. That’s a major change to track and a welcome one.

What do you think about increasing regulation of cryptocurrencies? Let us know in the comments below.

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