The digital asset space is slowly approaching the regulatory clarity it has long sought, but some work remains to be done, panelists said during a recent webcast hosted by Lockton’s Emerging Asset Protection (LEAP) team.
In the U.K., the Financial Conduct Authority’s new crypto asset rules took effect late last year, and the EU’s Markets in Crypto-Assets Regulation took effect in June, Although the U.S. has so far lagged behind Europe on digital asset regulation, bipartisan support for several initiatives is growing, and there is hope that legislative action will be possible in 2025.
Recognizing the value proposition of digital assets — and the fact that they are here to stay — traditional institutions are increasingly launching digital asset services teams. And tokenization of real world assets, including stocks, bonds, and commodities, is taking off. Traditional financial institutions are recognizing the benefits of this process, including increased distribution, liquidity, and transparency, and reduced administrative burdens.
Digital asset risk management, however, remains in the spotlight, and the insurance market continues to develop. Coverage is more readily available today than in the past, and—thanks to the effort of industry advocates, such as Lockton—insurers are becoming more comfortable underwriting a variety of digital asset risks.
Watch a replay of the webcast below, and contact Lockton for more information.