Clear Regulations Have A Positive Impact On Cryptocurrency Prices, Federal Reserve Bank of Dallas Reports

Cryptocurrency prices are quite susceptible to news, according to a recent paper. While, somewhat unsurprisingly, adverse announcements lead to immediate sharp declines, the establishment of clear regulations tends to mark serious market gains.

Crypto Reactions For News And Regulations

The report compiled by the Federal Reserve Bank of Dallas initially questioned the efficiency of instituting actual regulations on cryptocurrencies. It argued that digital assets can “function without institutional backing and are intrinsically borderless.”

Thus, regulations, more specifically national, could not provide the necessary effect. Yet, upon completion of the study, the report informed that “at the current juncture, authorities around the globe do have some scope to make regulation effective.”

The paper examined what the consequences in terms of price developments following particular newsworthy announcements on the matter are:

“News indicating possible novel legal frameworks tailored…