Lawyers see crypto regulation coming in 2023 because industry needs to rebuild trust
Despite an uneven year in the crypto markets, many market participants are unperturbed about the long-term health of the sector and say that legal frameworks in 2023 could restore trust in the industry.
“Crypto will recover,” Katherine Dowling, general counsel member at Bitwise Asset Management, said to TechCrunch. “This is not the death of crypto.”
Many believe that crypto is here to stay. It’s worth looking forward. After the FTX collapse, many questions were raised about crypto’s future and what regulators would do.
“There’s no impetus for regulators to reduce their level of enforcement activity and recent events are likely to embolden them.” Mayer Brown’s Joe Castelluccio
But the disappointment in what FTX’s implosion means is very difficult to overstate, Yesha Yanav, a professor of law at Vanderbilt University and director of diversity equity and community, told TechCrunch. “The disillusionment, disappointment and feeling of being deceived by FTX are so deep because it was considered one of the most compliant institutions in the crypto-economy and one that would lead the regulatory efforts .”
Now, FTX is clearly the “poster child” for all that could go wrong, Yadav stated. Regulators are now going back to the drawing boards after its downfall. “They might have had to do something else, more extensive and stricter in response to .”
But, what can we expect from regulators in 2023?
Regulators will finalize some of the proposals they introduced, Alma Angotti, partner and global legislative and regulatory risk leader at Guidehouse, said to TechCrunch. “I think there is a realization that the industry is too big to continue to ‘wait and see.'”
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.