With the war in Ukraine continuing to rage, governments in the European Union and United States have been actively working to answer many relevant questions related to crypto assets and technologies. Among the most important issues they are tackling are those related to finding the right balance between fostering an environment of innovation on the one hand and ensuring proper regulation and risk management on the other hand. In particular, they are assessing:
- How to best ensure consumer protection in a global environment
- If central bank digital currencies (CBDCs) undermine the financial stability of entire monetary systems
- What actions and cooperation mechanisms are necessary to curtail illicit activities and their funding
- How to provide all members of society with uncomplicated access to safe and affordable financial services
- If technological advancements will continue to reduce the carbon footprint of energy-intensive blockchain validation processes
New legislation and regulations on all things crypto are likely coming, but their real-world impact remains to be seen.