"Since its inception, the cryptocurrency market has been marked by vulnerabilities and a particularly high level of volatility, proving to be a wild ride for those who invest in this digital currency," according to a report from Logica Research. "In 2022, crypto company and project failures, the rise and fall of Terra and stablecoin UST, the downfall of the FTX exchange and rising interest rates all contributed to the ups and downs."

The major barriers to owning cryptocurrency cited in the report are:

• Too risky: 44%
• Don't know how to invest in it: 19%
• Lack of information from trusted sources:13%
• Volatility in the market: 9%
• Lack of regulations: 6%

In this uncertain climate, Americans shared what they are looking for to feel more comfortable with crypto in the future:

• Tying cryptocurrency value to the dollar:19%
• More assurance that payment into crypto is secure: 17%
• Less volatility with crypto value: 17%

Related: Cryptocurrency in 401(k)s: Fidelity takes the leap, but do workers understand both benefits and risks?

Although nearly one in 10 Americans has used a cryptocurrency or stablecoin to pay for something online, adoption varies by generation. Currently, millennials lead the pack in ownership of crypto at 24%, with Generation X coming in second at 13%. Of those who are not yet owners, 53% of millennials believe they likely will own crypto in the next five years, followed by Gen Z at 47%, Gen X at 38% and boomers at 16%.

The digital asset industry emerged as a lobbying force the last few years as startups tried to lay the groundwork for a friendly regulatory environment, winning over allies on both sides of the aisle. Crypto firms now find themselves playing defense after the FTX scandal. House Republicans are establishing a new subcommittee dedicated to cryptocurrency in this Congress, a move that puts oversight and legislation around the ailing industry high on the GOP agenda.

Patrick McHenry (R-N.C.), chair of the House Financial Services Committee, has long made financial technology issues a priority. He said he plans to create the panel because he believes there is "a big hole in how we structure the committee" as it spends more time grappling with crypto topics.

The creation of the digital asset panel underscores how crypto has come to dominate the financial regulation agenda in Congress. The Financial Services Committee in the past largely has focused on oversight of banks, Wall Street firms and their regulators. The new subcommittee will hold hearings and play a key role in developing bills.

Even amid the uncertainty, however, opportunities remain for investors and advisors who do their homework and proceed cautiously.

"A risky asset should be a small part of a retirement strategy, not the full strategy," said Clark Hodges, co-owner of Hodges Capital Management. "Cryptocurrencies are assets that are still very new and unregulated, which increases their risk. What will the landscape look like after the government gets in and has its effect on the cryptocurrency market? I would not want to own cryptocurrency in a major way when that is unfolding right before our very eyes."