There are already divisions emerging over cryptocurrency investment because some authorities believe they are akin to commodities, simply because they can be traded for goods or services. This view is shared by the Commodity Futures Trading Commission (CFTC) in the US, which claims cryptocurrency investments are not securities since they do “not have future contracts at this time .” They are also registered with the CFTC, which is currently considering whether cryptos should be treated as commodities or derivatives.
However, even though these do not fit into established legal categories, there are many who think it is inevitable they will be regulated. And if the G20 agrees, it could also have an effect on how these coins are governed within individual countries too.
The market has gone through some massive fluctuations over the last few months with values rising and falling on a daily basis. Prices peaked at around $20,000 per coin in December 2017 before beginning to decline again towards the end of January. This brought about some comment from regulators who pointed out these forms of digital money were often used for illegal activities despite having legitimate uses too.
What to expect
However, Reuters reports that new guidelines are being prepared by regulators ahead of an upcoming meeting of finance ministers and central bank governors at the Group of 20 (G20) summit in Argentina next month. It appears there will be more of an attempt to bring crypto under the auspices of existing laws rather than imposing new rules.
This is very much in line with what has been said by Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), who stated these tokens should be treated as securities, where applicable, but also noted it would depend on their construction.
However, even though these do not fit into established legal categories, there are many who think it is inevitable they will be regulated. And if the G agrees, it could also have an effect on how these currencies are governed within individual countries too.
The crypto market will continue to rise as many more see it a viable route to put their earning to use. With the Bitcoin ETF being approved recently, it makes things far more feasable for investor when it comes to security of their assests. This form of digital money every day keeps getting stronger and it is inevitable for it to become at some point the preselected currency of use.
We will continue to see fluctuations in this upcoming market because of the massive inflation rate that has been caused by the United States government. They have been printing trillions of dollars in the past few years and of course will somehow affect the cryptocurrency investments as well. Rest assured that placing your money in these type of assests will provide more security long term than the US dollar.