June 26 (Cointime) - The recent collapses of banks such as Silvergate, Silicon Valley Bank, and Signature Bank have exposed the need for regulation in the crypto industry. These banks were heavily involved in the industry, providing fiat on-ramps for retail investors. The fallout from the FTX incident caused capital to dry up, leading to bank runs and institutional failures.

While some may view regulation as restrictive, it is necessary to prevent future scenarios like this and to provide clarity for players in the space. However, the multitude of regulatory bodies in the US and their lack of agreement on the classification of cryptocurrencies as commodities or securities creates confusion and poses a challenge in achieving a balance between regulation and innovation.

The US House Financial Services Committee is pushing forward a bill to provide stablecoin regulations similar to the EU's MiCA legislation, but there is still much work to do in establishing clear guidelines and expectations for the Web3 space.