Giant Companies Set Up Crypto Council For Positive Bitcoin Regulations

 

A group of large companies such as Fidelity, Coinbase and Square have created a crypto Council to lobby policymakers. The companies have formed a new group aimed at changing the way Bitcoin and other cryptocurrencies are regulated. 

The council's launch comes as the field has attracted new mainstream investors and the banks that serve them as prices for many digital assets rise. Earlier this year, the total market value of Bitcoin, the most popular digital currency, reached $ 1 trillion for the first time. The total cryptocurrency market reached $ 2 trillion yesterday.

Still, the future of the market is not yet certain.

The mission of the Crypto Council for Innovation is to “demonstrate crypto's promise of transformation and convey its benefits to policymakers, regulators and people around the world.”

Advocates argued that cryptocurrencies and the blockchain technology that supports them have the potential to create jobs and expand financial services to consumers, with little or no cost. But policymakers and regulators around the world will play a critical role in shaping the way forward.

Uncertainty over future of cryptocurrencies

Crypto venture capital firm Paradigm is also the first member of the council. According to the Wall Street Journal, Paradigm co - founder Fred Ehrsam said cryptocurrencies are at a “mainstream turning point.”:

“[CRYPTOCURRENCIES] ARE IN THEIR VERY EARLY STAGES, AND JUST AS THE INTERNET ONCE WAS, THEY ARE VERY FRAGILE.”

"IT'S COMPELLING, BECAUSE LAWMAKERS WANT TO BALANCE RISK AND REWARD. EVEN THOSE WHO HAVE BEEN IN THIS FIELD FOR A DECADE HAVE A HARD TIME PREDICTING WHERE CRYPTO WILL GO IN THE NEXT DECADE. IT WAS HARD TO TELL WHERE THE INTERNET WOULD GO, TOO.”

The council reportedly plans to appoint a board that will include members from each of the first four members. The group will also add a management team, Ehrsam reported.