Is America Ready for Crypto or Crypt-No: Understanding Cryptocurrency User’s Willingness to Federal Regulations

Cryptocurrency is a digital currency that is decentralized from financial institutions and can be used for financial transactions among individuals, which due to its decentralized nature, has been viewed by some in the financial sector as the “wild west.” It can be used in financial transactions, investments, and criminal/illegal activities. As cryptocurrency has become more mainstream, it has infiltrated popular media and become a focal point of social media posts. Since 2016, presidential candidates such as Andrew Yang, Vivek Ramaswamy, and Donald Trump have embraced cryptocurrency to varying degrees. While other nation-states have begun to implement regulations on the cryptocurrency industry, the United States is largely undecided on regulations. This study examines American public opinion sentiments using a nationally representative sample on the readiness of both cryptocurrency investors and noninvestors for the cryptocurrency industry to be regulated. The findings suggest that potential crypto regulations receive mixed support among both noncrypto owners and crypto owners. This research finds differing opinions on cryptocurrency regulations among those knowledgeable about cryptocurrency and those who have engaged in the cryptocurrency market. The study provides policy implications for cryptocurrency regulations in the United States.