The Unintended Consequences of FIT21’s Crypto Market Structure Bill

The invoice’s proposed bifurcated marketplace for restricted and unrestricted digital belongings ignores fungibility as a basic attribute of crypto tokens. By creating classes of restricted and unrestricted belongings, the invoice disrupts this precept, resulting in confusion and market fragmentation. This might impair liquidity, complicate transactions and threat administration mechanisms equivalent to derivatives, cut back the general utility of the crypto tokens and in the end stifle innovation in a nascent trade.