Cryptocurrencies made big news as prices skyrocketed, turning investors into overnight millionaires. When anything big happens in a financial market in the U.S., you can expect regulators won’t be far behind. Among other agencies, the crypto revolution caught the attention of the Federal Reserve, America’s central bank, and a top financial regulator. Here’s what you need to know as a crypto trader and investor, considering how regulations may influence your crypto going forward. If you’re new to crypto, here’s a brief primer on how it works. Cryptocurrencies are a form of digital money managed by distributed computer networks. Each works differently, some come from volunteer programmers, others are made by companies – Fortune 500 enterprises, startups, and everything in between. Cryptocurrencies are digital assets that are not backed by any government. Government currencies, known as fiat currencies, are backed by the credit of their national government or government body, such as the Federal Reserve or European Central Bank. Cryptocurrencies only derive value from the communities that use them.
Read more : Does The Federal Reserve Regulate Cryptocurrency?
