FX.co ★ Crypto may destabilize markets amid lack of legislation

Some governments are cautious and even suspicious about the cryptocurrency market. They have to accept the existence of digital assets. However, many of them are seriously worried about the risk of illegal activity in the crypto market.

Recently, regulators have made statements on the legislation that will control the cryptocurrency industry. Former US Secretary of State Hillary Clinton supports this initiative. Clinton is strongly concerned about the lack of regulation in the digital asset industry. According to Clinton, the unregulated crypto market is “undermining the role of the dollar as the reserve currency.” The politician believes that the US counterpart countries may destabilize the dollar using cryptocurrencies.

Meanwhile, according to economists, blockchain technology and the potential of cryptocurrencies impose risks on the traditional financial market. However, a unified legal framework is likely to stabilize the situation. Digital assets should not become the main instrument of market manipulation, Clinton says.

The Former US Secretary of State drew attention to the opportunities of cryptocurrencies amid the US imposing sanctions against several countries. Clinton stressed that digital assets could bypass the restrictions. She urged Joe Biden’s administration to take measures regarding the regulation of this industry. According to Clinton, the cryptocurrency sector should be subject to the legal framework as soon as possible.