Regulating Cryptocurrency: New Players, New Urgencies
In an op-ed in the Wall Street Journal on June 6, 2021, former SEC Chair Jay Clayton and former Undersecretary of the Treasury Brent McIntosh warned against the “serious risk of both overregulation and underregulation” of cryptocurrencies. They were responding to a rapidly changing financial marketplace in which innovative and complex digital products and services have become mainstream. They were also responding to recent statements by legislators, administrators and regulators advocating for a more comprehensive framework of government intervention to protect consumers and investors from price volatility and the fraud and money laundering that has proliferated across digital platforms. In this article, we review some of the recent pronouncements concerning cryptocurrency regulation, including the latest considerations on the development of a U.S. central bank digital currency.