Editor’s note: This article has been updated to correct Joey Garcia’s title at Xapo Bank.

The ‘Crypto & Blockchain Outlook in 2024‘ event hosted by Benzinga spotlighted the critical issue facing the crypto world today: balancing blockchain’s inherent decentralization with the emerging need for regulatory frameworks. This balance is increasingly vital as the cryptocurrency sector continues to evolve.

The Impact Of Politics On Crypto

Alex Chizhik, COO of the Chamber of Digital Commerce, brought into focus the influence of political dynamics on cryptocurrency’s regulatory path. He stressed the importance of political leadership in shaping the industry’s future. “The direction of cryptocurrency regulation is significantly influenced by political dynamics,” Chizhik observed, highlighting policy-making’s role in the crypto landscape.

A Global View On Cryptocurrency Regulation

Joey Garcia, director, head of policy and regulatory affairs at Xapo Bank, then expanded the discussion globally. He discussed the diverse regulatory approaches adopted globally and stressed the importance of creating adaptable rules. “Countries worldwide are trying to understand and navigate this new ecosystem,” Garcia noted, emphasizing the need for regulations that align with the unique characteristics of digital assets.

Also Read: Bitcoin Pressure Eases As Profit-Taking Party Winds Down, JPMorgan Examines GBTC

Perspectives On Innovation And Regulation

Shifting the focus to the challenges faced by innovators, Stefan Russo, CEO of Truflation, expressed concerns about the impact of the current regulations on technological progress. “The regulatory framework, as it stands, might stifle innovation,” Russo warned, highlighting the potential negative consequences of overregulation.

Europe’s Approach To Crypto Regulation

Jesper Toft, founder of the GJU Protocol, offered a critique of the European Union’s regulatory strategy. “The EU is applying outdated frameworks to a new technology,” Toft argued, stressing the need for regulations that fully grasp the essence and potential of blockchain and cryptocurrencies.

Benzinga Cannabis Conferences are coming to Los Angeles. Join the Benzinga Cannabis Market Spotlight: California and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders, gain insider insights into the investment landscape, and shape the evolving markets in California and beyond. Don’t miss this chance to be at the forefront of the cannabis industry’s growth and innovation! Join now.

Now Read: EXCLUSIVE: SEC’s Green Light to Bitcoin ETF — Is 2024 A New Era For Cryptocurrencies?

Images: Growtika/Unsplash