Digital assets like cryptocurrencies and NFTs are becoming more common. With more attention being placed on these new technologies, it’s not unusual for governments and other regulatory bodies to take notice. It would appear that the Federal Reserve is considering regulating digital assets.
Reuters reported on March 23 that the U.S. Federal Reserve Chair Jerome Powell states that regulation of digital assets is “highly likely”. The following statement was made during a panel organized by the Bank for International Settlements to discuss digital currencies:
It's highly likely that digital financial activities that are currently outside the regulatory perimeter will find their way, will be brought within it, which is necessary to level the playing field, keep the trust of users, protect consumers and all that.
It’s interesting to hear the Federal Reserve continue to talk about digital assets including cryptocurrency and NFTs. This seems to further legitimize the movement, though, at the same time there is the obvious conflict in that this started as an attempt to create a decentralized finance system.
Not only are taxes a big element in regulation, but so is the prevention of money laundering. We could be approaching a time where digital assets are thought of on the same level as other physical assets or things such as stocks.
While currencies like Bitcoin and Dogecoin are talked about more and more by the general public, large companies like GameStop talking about NFTs certainly helps bring more focus on the realm of digital assets. It’ll be interesting to see how all of this progresses should the Federal Reserve go down the line of regulating this new form of currency.