Bithumb Economic Research Institute: "US Cryptocurrency Regulations Have a Market Correction Effect... Investors Should Be Cautious"

[Asia Economy Reporter Lee Jung-yoon] Bithumb Economic Research Institute, under the domestic cryptocurrency exchange Bithumb, urged cautious investment as U.S. regulations are highly likely to bring a corrective effect to the cryptocurrency market.

On the 16th, Bithumb Economic Research Institute published a report titled "Stricter Regulation? Institutional Inclusion? Next Scenario." The report focused on examining the impact of the "Responsible Financial Innovation Act," jointly proposed by U.S. Senators Cynthia and Gillibrand on the 7th, on the cryptocurrency market.

The bill stipulates that going forward, Bitcoin and Ethereum in the U.S. will be regulated by the Commodity Futures Trading Commission (CFTC), while all other coins will be overseen by the Securities and Exchange Commission (SEC). The senators emphasized through the bill that most altcoins have the characteristics of securities, whereas Bitcoin and Ethereum fall under commodities such as currency and interest rates.

Furthermore, the bill plans to introduce the concept of ancillary assets, requiring disclosure for virtual assets located in the gray zone, such as non-fungible tokens (NFTs). Along with this, the bill proposes broad virtual asset regulations including ▲stablecoins ▲DAO (Decentralized Autonomous Organizations) ▲small investment tax exemption policies.

Bithumb Economic Research Institute predicted that if the bill is applied, Bitcoin and Ethereum will solidify their position as commodities. This means that Bitcoin and Ethereum could be accepted as portfolio products similar to traditional investment assets like stocks, bonds, gold, and silver.

For foundations issuing other altcoins, strong regulations equivalent to those for existing securities firms are expected. If the bill is enforced, foundations will be subject to securities offering regulations and disclosure obligations such as submitting securities registration statements. Ultimately, foundations that fail to secure investor trust will disappear, accelerating the selection of competitive projects.

Bithumb Economic Research Institute analyzed that although stricter regulations will cause growing pains in the cryptocurrency market, they will ultimately lay the foundation to strengthen the industry. Despite recent sharp inflation and weakened investor sentiment focusing on price volatility, discussions within the U.S. Congress are maturing, and a legal framework is being established.

Oh Yuri, head of policy research at Bithumb Economic Research Institute, said, "Since domestic regulations are likely to follow U.S. trends, this bill will have a positive impact when virtual asset-related regulations are enacted domestically," adding, "In the process, only competitive altcoins that meet legal requirements will survive, so cautious investment is required for investors."

This content was produced with the assistance of AI translation services.