The Future of Cryptocurrency

January 20, 2023 • Volume 33, Issue 3
Can the industry overcome recent turmoil?
By Val Ellicott


The November bankruptcy of cryptocurrency exchange FTX capped a volatile year of selloffs and chaos in the crypto market. This accelerated congressional efforts to create an oversight framework for the largely unregulated and highly unstable digital assets such as bitcoin. Crypto industry supporters, including many GOP members of Congress, view digital assets and their underlying blockchain technology as revolutionary, even as critics deride these assets as a massive Ponzi scheme and blockchains as impractical and environmentally hazardous. At stake is the future of an industry that has become a magnet for cybercrime, but that White House officials believe could bolster U.S. leadership in global finance. Meanwhile, the Biden administration is testing the concept of a government-backed digital currency that could accomplish some of the same goals cryptocurrencies sought to achieve, such as faster, cheaper international payments and giving unbanked consumers access to the financial system.

Photo of Sam Bankman-Fried leaving court in New York City, New York, on December 22, 2022. (Getty Images/Michael M. Santiago)
Sam Bankman-Fried, former CEO of the cryptocurrency exchange FTX, leaves federal court in New York City on Dec. 22 after being arraigned on fraud, money laundering and other charges. The company's downfall has fueled calls for more regulation of an industry that many say is a magnet for cybercrime, but others believe is critical to U.S. leadership in global finance. (Getty Images/Michael M. Santiago)
ISSUE TRACKER for Related Reports
Jan. 20, 2023  The Future of Cryptocurrency
Apr. 06, 2018  Financial Services Deregulation
Sep. 26, 2014  Digital Currency
Oct. 05, 2012  Euro Crisis
Jan. 20, 2012  Financial Misconduct
Jan. 13, 2012  ‘Occupy’ Movement
Oct. 24, 2008  Financial Bailout Updated
Sep. 01, 2000  The Federal Reserve
Jun. 22, 1990  S&L Bailout: Assessing the Impact
Nov. 04, 1988  Behind the S&L Crisis
Apr. 26, 1985  New Era in Banking
Nov. 18, 1983  Bankruptcy's Thriving Business
Aug. 07, 1981  Banking Deregulation
Jul. 19, 1974  Banking Stability
Jul. 17, 1968  Banking Innovations
May 06, 1964  Monetary Policy in Prosperity
May 16, 1940  Revision of the Securities Acts
Feb. 27, 1937  Expansion of Branch Banking
Sep. 03, 1935  The Decline of Commercial Banking
Dec. 11, 1934  Proposals for a Government-Owned Central Bank
Sep. 12, 1934  Bank Reserves and Credit Inflation
Nov. 27, 1933  Bank Credit in Depression and Recovery
Aug. 12, 1933  Closed Banks and Banking Reform
Apr. 04, 1933  Unified Control of Banking
Apr. 09, 1932  The Glass Banking Bill
Mar. 24, 1932  The Guaranty of Bank Deposits
Apr. 17, 1930  The International Bank and the Gold Standard
Feb. 08, 1930  Branch Banking and Chain Banking
Apr. 29, 1929  Mergers of Banking Institutions
Oct. 28, 1927  The Federal Reserve Rate Controversy
May 21, 1927  Labor Banking and Finance Since 1920
Jan. 31, 1924  The Northwestern Bank Failures and the Attack on Treasury Savings Certificates
Dec. 01, 1923  Why State Banks Do Not Join the Federal Reserve System, the Effect on the System and the Issues Involved
Nov. 23, 1923  Branch Bank Controversy
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