This is a three-part editorial series. Check out Part 1 here and Part 2 here.
The hallmark of the proposals from the Basel Committee on Banking Supervision (BCBS) for the regulation and prudential treatment of ‘crypto’ assets is a two-group taxonomy. Group 1 crypto assets are strictly limited to tokenized versions of real-world assets and stablecoins, with strict criteria that would likely preclude any popular stablecoins currently in use today. These assets are subject to a tough, albeit relatively familiar set of carrying requirements for banks, with the primary points of emphasis found in existing frameworks from Basel.
Digital assets which fail to meet the stringent requirements for Group 1 crypto assets automatically become Group 2 assets, which have an even more restrictive set of requirements—as well as limitations—than their Group 1 counterparts. Crypto assets which fall into the Group 2 classification cover essentially every popular crypto asset on the market today, from...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...