Many participants in the cryptocurrency industry do not express concern about the state of the market in the long term, writes TechCrunch.
They are confident that a new legal framework can restore confidence in cryptocurrency as early as next year, despite the fact that 2022 was a rather unstable year for the industry. Just recently, due to careless management, the second largest cryptocurrency exchange in the world, FTX, collapsed.
In the face of destabilization, the Binance cryptocurrency exchange even announced that it will allocate $ 1 billion to the fund to support the cryptocurrency market. At the same time, in case of strong need, the amount sent to the fund can be doubled.
Meanwhile, questions are being raised about the future of cryptocurrencies and what regulators will do next. Bitwise Asset Management board member Katherine Dowling told TechCrunch that what is happening is “not the death of cryptocurrencies” and the industry can still recover.
Joe Castelluccio of Mayer Brown, a New York-based digital asset law firm, stressed that “there is no incentive for regulators to lower the level of enforcement” in relation to the market today, and recent events are likely to “only encourage them” to increase this level.
Yesha Yadav, professor of law and director of diversity, equity and community at Vanderbilt University, emphasizes that the disappointment of what constitutes the collapse of FTX cannot be overstated:
The level of frustration and frustration and feelings of deception from FTX is so deep because it was seen as one of the most compliance-friendly organizations in the crypto economy and as the exchange that would spearhead regulation efforts.
According to Yadav, it is now clear that FTX is “the personification for everything that can go wrong.” Its collapse forced regulators to think about making new decisions, and they will probably have to come up with “something bigger and more strict” as a response to what happened.
Alma Angotti, partner and Head of Global Legal and Regulatory Risk at Guidehouse, agrees that regulators will be refining their efforts to control an industry that is “too big to just wait and see.”