Fidelity Digital Assets, a subsidiary of Fidelity Investments focused on cryptocurrencies, forecasts a state level adoptions for bitcoin (EXANTE: Bitcoin) as more sovereign nation states will acquire the cryptocurrency in 2022. According to a recent report, more countries "will be forced" to acquire some as a "form of insurance."
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
"In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future," the analysts wrote in the report.
Even though some regulatory frameworks focused on cryptocurrencies have been proposed in Washington last year, the legislation is unlikely to go into effect until 2024 as there are already multiple amendments being proposed, the analysts say. Even though the timeline for the crypto market regulation remains vague so far, the fact itself that cryptocurrency regulation becoming law is "another milestone as the asset class comes of age and establishes itself," Fidelity emphasizes.
Meanwhile, the acting comptroller of the Office of the Comptroller of the Currency (OCC), Michael Hsu, is calling for more bank-like regulatory obligations for stablecoin issuers as the potential scope of the collateral damage "will continue to grow as long as crypto expands." In a recent speech at the Transatlantic Finance Forum's Executive Roundtable, Hsu pointed out that stablecoin issuers subject to bank regulation would give stablecoins holders "confidence that those coins were as reliable and "money good" as bank deposits."
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.