Cryptocurrency is a way of monetary exchange through currency, just online. It uses digital encryption methods with blockchains to store the units of monetary information and to verify transferring of money.

Blockchains are databases managing the storing and distribution of encrypted blocks of data which are organized into real-time publicly accessible sources of truth for the general public to view. Blockchains are what allow cryptocurrencies to exist. A cryptocurrency cannot be formed and used without a correctly configured blockchain.

One of the most well-known cryptocurrencies is Bitcoin. Bitcoin is used for online transactions without the need for third-party services and is found through a decentralized process known as mining. The main reason why people buy these is for the bets they make on its future stock value compared to how much it costs now. Currently, this form of currency is not regulated in the United States, even if it is legal. It is widely believed that regulation would bring all sorts of benefits, such as more safety through the more centralized versions of currencies. This system would protect investors more from the multitude of scams within the industry. There’s no way to know if your cash is safe, or whenever transactions could get hacked.

Regulation would also prevent money laundering and tax evasion. Many cryptocurrency platforms still have anonymous trades, instead of KYC procedures, or “know-your-customer” forms that users have to fill out before making transactions. Without regulation, cryptocurrencies can’t reach their full potential. Only about 14% of Americans own some form of cryptocurrency, but with the proper regulations and protection, more people could be willing to invest in it.

This could also help commercial business-based investors keep away from criminal investigations in case fraudulence is found in a currency’s shares. Along with this, though is the need for education about the topic. New York mayor-elect Eric Adams believes that blockchain technology should be taught in schools, most likely to inform students about the newly-changing future of monetary transactions.

Regulation of crypto could help with these ideas and lead to new courses being offered about cryptocurrency in schools. But arguments opposing regulation also bring up valid points. For example, regulation of cryptocurrency removes its original purpose- being decentralized from the government and major banks. It gives power to individuals wanting to control their finances without having big corporations always looking over their shoulders. Another common belief is that regulation will deform the flexible fundraising models. Investors and cryptocurrency companies wouldn’t be able to access the programs that they currently can which allow them to not have to follow strict security-based laws. And finally, prices would drop.

Regulation is already a feared topic in crypto circles, and if it does occur, people might shy away from the idea of investing in it. In the end, although the idea of regulation might scare some investors off, when done moderately it would probably generate a positive outlook from society due to how it stabilizes the system and adds more trust into the equation, which could bring in more investors to the cryptocurrency environment while weeding out scams and illicit funds.