Analysts report a surge in crypto regulations across 80% of prominent jurisdictions in 2023.
TRM Labs, a blockchain analytics firm, has released a report stating that approximately 80% of jurisdictions worldwide have implemented stricter regulations within the cryptocurrency industry. This data was compiled by TRM Labs and represents around 70% of global exposure to cryptocurrencies. Notably, almost half of these jurisdictions have focused on initiatives aimed at enhancing consumer protection.
Despite the lack of a comprehensive regulatory framework for cryptocurrencies in the United States, TRM Labs predicts that federal courts will make significant rulings in 2024 to determine whether specific crypto assets can be categorized as securities. Uncertainties surrounding decentralized finance, particularly in terms of responsibility, accountability, and regulatory oversight, are acknowledged by analysts. While definitive answers to these questions may not be provided in 2024, TRM Labs believes that the year will be crucial for the implementation and establishment of standards in the next phase of digital assets.
The stance of American regulators regarding cryptocurrencies remains uncertain, as previous indications suggest that existing financial laws are still applicable to digital assets. In December 2023, the U.S. Securities and Exchange Commission (SEC) rejected Coinbase’s Rulemaking Petition, citing three reasons: current laws already cover crypto securities markets, the SEC addresses these markets through rulemaking, and the need to maintain the Commission’s discretion in establishing rulemaking priorities.
However, Coinbase’s chief legal officer, Paul Grewal, stated that the company would still attempt to challenge the SEC’s authority to determine crypto regulation standards through another appeal.
