Cryptocurrency regulation refers to the laws governing digital assets, often referred to as cryptocurrency, virtual currencies, crypto tokens or “cryptoassets.” While these regulations vary widely by country, most seek to balance innovation with consumer protection and financial transparency. The rules define how cryptocurrencies can be issued, traded and integrated into financial systems.
Regulatory bodies have been grappling with these issues and the definition of digital assets for over a decade. The IRS, SEC, CFTC and various other federal agencies have each taken different approaches to the issue and have made varying determinations of what constitutes a digital asset.
While some proponents of cryptocurrency argue that regulation would confer legitimacy to the industry and spur new innovations, others oppose any form of regulation, arguing that existing laws against fraud and other risky activities should suffice. Nevertheless, with increasing investment in this asset class and the growing number of consumers using it, some states are moving to close gaps in existing banking, securities and money transmission laws and adopt more comprehensive rules that offer legal clarity, consumer protections and broader market legitimacy.
With new legislation pending in California and other states, future lawyers should stay on top of the developing field of cryptoregulation to ensure that they can advise clients about which laws apply to them. Purdue Global Law School is committed to keeping its students up-to-date on this rapidly evolving area of law and is proud to offer one of the only programs in the world that allows its graduates to practice both in the U.S. and the United Kingdom.
