A number of states in the United States, including Kentucky, Texas, Alabama, Vermont, New Jersey and, most recently, New York have been cracking down on crypto lending. Depending on one’s perspective, these can amount to acts of collective desperation or a foretoken of things to come.
Asked about the clampdown on crypto lending firms like BlockFi and Celsius, Firat Cengiz, senior lecturer in law at the University of Liverpool, told Cointelegraph: “The crypto regulatory space is getting increasingly heated, and not only in the U.S. but also in the rest of the world.” She added that a new regulatory approach is emerging and, as such, “the crypto market will no longer be an example of a free market regulated purely by the ‘invisible hand of the market.’”