Rodgin Cohen, the dean of Wall Street lawyers, stated that he sees a forthcoming sweeping Bitcoin regulation. And in just a matter of time, US regulators would launch a sweeping response to bitcoin.
Cohen, 73, predicted in an interview that “As global banks increasingly help investors bet on digital currencies, federal authorities will develop a joint strategy for policing the growing market.” He added that it would make sense for the Financial Stability Oversight Council – a group of regulators led by the Treasury Department – to take the lead.
According to him:
“Cryptocurrencies create so many issues that no one agency can be legitimately expected to deal with them, and FSOC would be an ideal place to bring the agencies together. The objective is to make sure there’s a focused regulatory approach and understanding of the positives and negatives of cryptocurrencies.”
Cohen, who has been playing a key role in responding to several major banking crises, advises many of the biggest firms in part because of his experience predicting Washington’s actions. So far, banks have also been attracted by the frenzy over cryptocurrencies but are reluctant to jump into the largely unregulated and opaque market – probably because of concerns that they could default rules, such as strict requirements for preventing money laundering.
Cohen, who is also senior chairman of New York-based law firm Sullivan & Cromwell LLP. Still, stated the banks “have been appropriately cautious in the absence of regulatory guidance.” He added that “I can’t imagine any major institution isn’t looking carefully at the issue. I don’t think anybody will just hang back and say, ‘We’ll think about it in a couple years.’”
Such sweeping bitcoin regulation could have a devastating effect on Bitcoin as well as other cryptocurrencies. Investors, watch out and be careful.
What do you think the effect of this forthcoming sweeping Bitcoin regulation could be? Tell us in the comment box.