A subcommittee of the US House of Representatives’ Financial Services Committee led a hearing on 30 June 2021 evocatively titled “America on ‘FIRE’: Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?” aimed at channelling discussion on whether crypto volatility was a risk to retail investors that are having an increasing involvement in the space.
The central question of the hearing was whether crypto markets in the US require new laws or increased clarity from regulators under the existing regimes. Due to the focus on retail investors, comparisons were drawn by politicians to the financial crisis of 2007-2008 when subprime debt and “exotic products” undermined the financial system. Whilst the outcome is far from decided, the title, coupled with the topics of conversation in the hearing have led some critics to call it yet another signal for an upcoming regulatory push in crypto.
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The regulatory regime which applies to crypto assets is increasing in complexity. Rosenblatt advises on all aspects of crypto assets and regulatory law.
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Should you have any questions about the legal framework for crypto assets in the UK, or wish to discuss your crypto business with us, please contact the authors named below.
Author
Laura Clatworthy, Partner (laura.clatworthy@rosenblatt.co.uk)
