BitOoda Global & Regulatory Analysis, 12/30/2019: Forecasts for 2020

Happy New Year from BitOoda!

As we read various “year in review” assessments and predictions for 2020, we felt emboldened to offer a few potential scenarios for the year ahead on the regulatory front. Given our weekly analysis of these topics, we list below a few broad statements that, in our view, represent trends and developments with a decent probability of coming to fruition next year. As with everything in this space, things can always change unpredictably, so please don’t take these judgments as anything more than informed opinions on a subset of regulatory and geopolitical topics of interest to us and our clients:

  • Congress will pass the first meaningful U.S. legislative action on digital asset regulation.
  • The new FATF travel rule will spur increased industry coordination by forcing market participants around the world to coordinate its implementation and compliance efforts.
  • Non-government SRO-like groups such as ADAM and GDF will be increasingly effective in serving as sources of industry standards and a more unified set of voices to global regulators.
  • Despite its improving understanding of digital assets, SEC will not approve a bitcoin ETF and will continue its approach of “regulation by enforcement,” while CFTC will continue to use a principles-based approach to maintain its continued oversight of its slice of the digital asset market while enabling at least some advancement in the products and activities it allows.
  • China will issue its digital yuan and other countries will follow in launching their own CBDCs, but the U.S. will not follow suit in the near term. (See Brookings’ recent piece, “The current landscape of central bank digital currencies,” for a snapshot of the growing interest worldwide in government-backed cryptocurrencies.)
  • Congress and other U.S. and European regulators will continue to closely scrutinize Libra, delaying its launch and further splintering the Libra Association.
  • International standard-setting bodies — such as the FATF, the Basel Committee on banking standards, the Financial Stability Board, the IMF, IOSCO, and others — will become increasingly active in addressing key policy questions surrounding digital assets.
  • U.S. companies will continue to take various regulatory approaches to working with (or around) the SEC in proposing and launching new products and offerings.

We at BitOoda look forward to continuing to work with you all to navigate the constantly-changing digital asset market as we continue to expand our platform to include new products and services. Please continue to keep in touch with us (sales@bitooda.io) to learn about our growth plans for 2020 and how we can work together to drive the advancement of the digital economy.

A global digital asset financial technology & services platform providing next-gen risk management solutions, best-execution brokerage & expert market analysis.

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