How Fed's Crypto Denial Fits Into Broad Regulatory Movement

The crypto-asset sector has been in the crosshairs of federal banking regulators for several years. Rarely does a week go by without a statement or speech laying out the expectations or road maps for planned crypto-asset regulation.

Still, regulators have been playing a game of catch-up as the total market capitalization of crypto-assets grew to exceed $2.5 trillion by fall of 2021.¹ And while the regulators purported to forecast their priorities for crypto-assets, they took little concrete action to implement any planned regulations.

Shortly after, regulators were largely left scrambling without a concrete plan of action after the recent string of high-profile crypto bankruptcies began to domino in the summer of 2022.