Crypto Regulations Essential for Growth: Morgan Stanley

A united government could make it easier to pass new crypto laws and “follow the spirit of Biden’s executive order,” Morgan Stanley said in a report on Wednesday, according to CoinDesk. 

The bank’s public policy analysts noted that there are a few key issues that could pass by the end of 2023 depending on the November midterm elections: legislation surrounding tech regulations, cryptocurrency, pricing of prescription drugs, tax increases and China competition. 

In addition, the report discussed how defining regulations for the digital asset world, including cryptocurrency at large, stablecoins and other projects is essential for the industry to grow and gain mainstream backing. It also hypothesized of a central bank digital currency (CBDC) as something potentially on the horizon. 

In order to gain mainstream adoption and more backing, institutions, banks and investors want to see new legislation carried out quickly and promptly, avoiding an “extended period of uncertainty.” Uncertainty in the digital assets world means a slower adoption process and higher volatility. 

The report also references that both Democrats and Republicans have shown their frustration with current crypto regulations and believe that more government oversight will address those concerns. Lastly, the cryptocurrency industry is becoming more mainstream, as such, Morgan Stnaley added that lobbying has increased as a result. 

Author: Tyler Irvin

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