Trends in Regulation of Digital Assets- presented by FTI Consulting

The Block Research’s Trends in Regulation of Digital Assets report provides an extensive analysis of the regulatory landscape and enforcement actions surrounding cryptocurrencies in the United States and various international jurisdictions. The aim is to understand the complexity of regulations, asset classification, and the impact on crypto-related businesses and third parties. The report is structured into four main sections:

Part 1: Introduction

The report begins with an introduction outlining the importance of understanding the regulatory environment for cryptocurrencies. The growing popularity of digital assets has led to increased scrutiny from regulatory bodies worldwide and many jurisdictions have been focusing on developing appropriate frameworks in recent years.

Part 2: United States - State of Regulation and Enforcement Actions

This section delves into the regulatory complexities in the United States, covering the current regulatory focuses, including enforcement direction, asset classification uncertainties, and the differing approaches of regulatory bodies. The report also examines the impact of regulation by enforcement, recent banking uncertainty faced by crypto firms, and the repercussions of these developments on crypto-associated third parties.

Part 3: International Jurisdictions - Crypto Regulation Landscape

This section explores the regulatory landscape in several international jurisdictions, covering noteworthy trends in the Middle East, European Union, United Kingdom, Asia and Latin America. Global regulators have responded to significant crypto-related incidents in 2022 by actively developing and updating regulatory frameworks for crypto-assets. The focus is on achieving a balanced approach that brings clarity to businesses and market participants. This includes delegating regulatory authority to specific agencies, setting clear boundaries, and emphasizing the regulation of stablecoins. The report also recognizes the need for further development in addressing crypto-native concepts like DeFi regulations.

Part 4: Conclusions and Outlook:

The report concludes by summarizing the key findings and highlighting three potential industry developments: a focus on safer assets, a reduction in U.S. exposure, and the segregation of activities.