A US regulator on Tuesday launched a so-called crypto task force, a further sign of the new Donald Trump administration's embrace of digital assets.
The US Securities and Exchange Commission said the task force would help to deliver a “comprehensive and clear regulatory framework for crypto assets”. The task force will also help to establish regulatory clarity, introduce enforcement resources and clear paths to registration.
It will also co-ordinate with the US Congress to provide technical assistance as the legislator makes changes to the statutory framework, the SEC said.
“We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” SEC Commissioner Hester Peirce said in a statement.
The move is one that the industry has long waited for, and one that Mr Trump promised during his campaign. Bitcoin climbed 3.3 per cent to $107,268.27 after the announcement.
The announcement also marks a further shift towards Washington's embrace of cryptocurrency. The SEC clashed with the industry during former president Joe Biden's administration, and former SEC chairman Gary Gensler was considered one of the industry's biggest enemies.
Under Mr Gensler's stewardship, the SEC sued Binance, Coinbase and other crypto exchanges that it accused of being unregistered securities exchanges, brokers and clearing agencies.
According to the Blockchain Association, which represents nearly 100 people in the industry, his SEC brought more than 100 enforcement actions against the industry that cost its members $429 million in legal fees.
Mr Trump promised other pro-crypto policies during his electoral campaign, including the establishment of a Bitcoin strategic reserve. He and first lady Melania Trump also launched a pair of meme coins before his inauguration on Monday.
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
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The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
