Opinion: When the crypto crisis hits (and it soon will), the U.S. will be forced to strip away the cloak of anonymity that facilitates criminal acts and which gives crypto its allure

CAMBRIDGE, Mass. (Project Syndicate)—With cryptocurrency prices plummeting as central banks start to raise interest rates, many are wondering if this is the beginning of the end of the bubble.

Perhaps not yet. But a higher opportunity cost of money disproportionately drives down the prices of assets whose main uses lie in the future. Ultralow interest rates flattered crypto, and young investors are now getting a taste of what happens when interest rates go up.

A more interesting question is what will happen when governments finally get serious about regulating bitcoin BTCUSD, -2.49% and its brethren. Of the major economies, only China has so far begun to do so. Most policymakers have instead tried to change the topic by talking about central bank-issued digital currencies (CBDCs).