One of the hottest topics in the cryptocurrency world is the legal framework for digital assets associated with the blockchain. Therefore, this edition of the North American Bitcoin Conference (TNABC) could not miss the issue of future regulation in this field. In this panel, find highly qualified experts in the legal field.

The forum featured Jeff Howard from OSL, Veronica McGregor from Exodus, Mary Beth Buchanan from Elliptic, and Liat Shetret. The panel was moderated by Andrew Hinkes, a representative from K&L Gates. The experience of these experts is a starting point for understanding the possible laws that will dominate the cryptocurrency world in the coming years.

It is important to consider that there is no clear regulatory framework in the world of blockchain-related finance. While there are some laws related to digital mining and taxation in many countries/regions, it should be noted that other sectors remain in the dark. Among the latter, the booming markets of decentralized finance (DeFi), irreplaceable tokens (NFT) and stablecoins are particularly prominent.

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What aspects of future regulations are covered by TNABC?

As the TNABC Forum made clear, the future regulations that apply to the world of cryptocurrencies will have a huge impact. This is a marketplace that is transforming from a non-existent law to one with a legal framework that many will see as abusive and alarming to nation states.

For Shetret, there can be both negative and positive aspects to the regulations that emerge in the DeFi world. On the positive side, consider the removal of criminals from this decentralized marketplace. Consider that most scammers will be protected by the lack of third parties and the anonymity within DeFis.

Panelists assured that the regulations for such finance must be completely different from those of the statutory sector. "This is a new reality that requires the reapplication of regulatory laws," he said. As a result, he assured that, in his experience, a range of concepts will not be adapted from one sector to another. "Innovation is needed where necessary to bridge the gap between meeting regulatory expectations and what the DeFi program needs to do."

This aspect of the future of regulation in the cryptocurrency world is just one of the elements analyzed in this TNABC forum.

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Other issues addressed by TNABC regarding the regulatory framework

A related fact of possible regulations is that introducing centralized laws in a decentralized movement may be incompatible. This is part of Veronica McGregor's vision. The panelist assured that, in her experience, this could turn out to be disastrous. "In my experience, we adopted a decentralized entity, and when we moved our training platform and gave it to token holders to change the form, we ended up with a centralized company," he explained.

For her, the key question is "who will regulate you and by what standards?" In the same context, Jeff Howard believes that the main issue is to define what a smart contract is and what protocol works with it to create regulations, rather than applying incompatible existing regulations.

Rather, the panelists at the TNABC Forum agreed that future regulations must be new and in line with this new form of finance. Seeing the positive aspects of the regulations, Mary Beth Buchanan assured that the main focus of the regulators is on who is conducting KYC, who is launching the tokens and who is defining the lending commissions.

At the same time, he affirmed that "regulators will sit at your table and allow you to grow in compliance with the laws that pertain to the industry."

Stabilization of the currency, one of the main objectives of the government review

Stable coins are digital currencies that are, as the name implies, stable. This means that its price is pegged to the price of national currencies such as the US dollar. They are essential for trading cryptocurrencies in any way. For example, they are the basis for matching in futures, spot and other transactions. Moreover, they are an integral part of decentralized finance.

For all their potential, authorities will eventually see them as a huge challenge to the dollar's dominance. As a result, Hincks explained, they become one of the typical targets of government scrutiny. As a result, "the Treasury secretary in former President Trump's administration has warned that regulation is underway," he said.

"We saw a lot of interest in stablecoins last year, and we will see more in 2022," Buchanan noted. TNABC's experienced panelists said that stablecoins such as DeFi, Exchange and NFT will all be part of the regulatory future.

For his part, he explained that the Senate and the House of Representatives are working hard to understand the implications of these coins. Likewise, he explained that they are rapidly moving forward with a series of laws that would limit the scope of these private currencies.

At the same time, Buchanan highlighted a very important aspect. It is that stablecoins are used worldwide. Therefore, even if the regulatory measures in the United States reach the worst case scenario, i.e. a ban, these currencies will not remove the market.