Legislators now have an incentive to create legal frameworks around the blockchain and digital currency industry. Before, both industries were full of early adopters, enthusiasts, and technologists who understood how blockchain technologies would play a vital role in the world\u2019s future. At the time, the digital currency industry was only a few years old and it was either not on the radar for regulators or they felt that the sector was too insignificant to spend their resources on.<\/p>\n
But now, the industry, as well as the industry participants, have changed. Today, there are far more legacy banking, finance, and fintech enterprises crowding the space. Over the past few weeks, we have seen companies like Tesla, BNY Mellon, and Mastercard announce that they would be getting involved in the blockchain and digital currency industry in some capacity.<\/p>\n
Regulations are needed<\/strong><\/p>\n With legacy enterprises entering the blockchain and digital currency industry in mass, both industries will inevitably get prioritized by lawmakers.<\/p>\n Hester Peirce, a commissioner on the Securities and Exchange Commission, recently commented on the matter saying that legacy companies entering the industry \u201cadds to the urgency of us taking some sort of action in this area to provide more clarity.\u201d<\/p>\n The institutions that we see entering the industry have hundreds of millions of users located around the world, that being said, regulators have more of a motive to create guidelines opposed to when the blockchain and digital currency sectors had far fewer participants.<\/p>\n The legacy service providers that we see entering the space have a lot of influence in their sectors, economies of scale, and the ability to impact many lives, so legislators will be sure to put regulations in place that will best protect consumers.<\/p>\n