In an effort to demonstrate their revolutionary zeal, the cryptographic nerds take advantage of it to expose their hatred of the rules and “man”.
Sam Bankman Fried, the imprisoned founder of the FTX Cyptocurcher Exchange and author of one of the largest corporate fraud, summed up the ethics of cryptographic industry as “F *** regulators”.
Bankman Fried’s profane missive, given to a Vox journalist via direct messages on a social media site in 2022, is emblematic of the crypto philosophical dichotomy: the desire to sit outside the traditional financial system, but you have to be widely used to replace this financial system.
The absence of a “crypto manual” was an obstacle to the development of industry, contributing to the low protection of consumer compared to traditional financial assets and the drafting of accusations of large Money laundering and the financing of terrorists in industry.
Some of these obstacles to legitimacy have been deleted given a burst of legislative activities in America last week, which was nicknamed the “cryptography week” of the American government.
President Trump did not hide his support for the cryptographic industry, his biggest stars and his community, many of which have found a house on his social site of truth. This is hardly surprising since he has received tens of millions of dollars in industry donations for his presidential campaign; supervised the creation of him and the “same” of the first lady Melania Trump; And the management of World Liberty Financial, a company that offers digitized cryptographic tokens linked to the dollar, by two of his sons, Donald Trump JR and Eric.
Trump led the bills on digital currency through the US Congress. The three laws – genius, clarity and acts of the anti -CBDC surveillance state – have the potential to be the “Big Bang” moment in American crypto industry.
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“Institutional adoption is definitely an important step on the course (cryptography), and the change in pace and approach to the United States is a large engine of adoption,” said Varun Paul, main director of Fireblocks financial markets, a digital asset platform and a former fintech chief (financial technology) of the Bank of England.
Friday, the Genius Act, which exceeded the House of Representatives, exceeded the House of Representatives and was promulgated by Trump by Trump.
The law defines the characteristics of a “stablecoin”, allowing regulators to determine when the tokens reach such a status, currently a troubled zone. Stablecoins are fixed to a safe asset, such as the dollar, with a stable value to minimize fluctuations in typical prices of many cryptocurrencies. The law will also expand the number of private companies that will be able to issue their own stablecoins.
Paolo Ardoino, CEO of Tether, creator of the largest stablecoin in the world with a market capitalization of more than $ 100 billion, said that the Act respecting engineering “represents an important step towards the creation of a clear regulatory base for the digital asset industry in the United States”. He added: “Well -designed regulation is the key to promoting innovation, protecting consumers and allowing a broader adoption of blockchain technologies.”
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Stablecoins are mainly used by cryptographic traders to move capital between cryptographic assets. There are about $ 250 billion in traffic, which are all linked to the dollar. Some investment banks believe that the market will exceed $ 1 billion over the next five years.
Given the Stablecoin-Dollar-Peg, the Act on Engineering would devote the existing domination of the greenback in a financial system with greater use of cryptocurrencies.
Central banks fear that financial stability can be shaken if stablecoins reach ubiquity. In an interview with Times this month, Andrew Bailey, governor of the Bank of England, said that he “preferred” that commercial banks offered digital traditional silver tokens after reporting that several high lenders, including Citi and Bank of America, planned to publish their own stablecoin jointly.
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Jeff Hancock, Coinpass Managing Director, a Crypto investment platform, said: “The governor is right to worry about the stables supported by banks and their potential to harm the existing British monetary system.
Niklas Kammer, research analyst in Morningstar, said: “Central bankers could be left behind these systems if they are not more proactively involved in the construction and formation of this infrastructure.”
Distinct rules supervising the structure of the digital asset market and the ban on digital currencies from the central bank have also been adopted by the House of Representatives, but must still be elected by the Senate.
The Clarity Act aims to reduce surveillance of the SECURITIES CRYPTOGRAPHY AND EXCHANGE Commission, the American financial guard dog. This would prevent federal agencies from using judicial judgments as a precedent to suppress Crypto companies, far from prosecution against cryptographic societies launched by Gary Gensler when he presided over the presidency of Joe Biden. Instead of the crypto is tamed by the application, there would be an explicit regulatory manual supervising the industry.
The bill would transfer most of industry surveillance to the Commodity Futures Trading Commission, which regulates the raw materials markets which have less consumer protection in place, because most of their participants are institutional and professional investors. The Clarity Act “could leave more vulnerable retail investors than under the status quo,” said James Locke, head of government affairs in Morningstar.
In the end, the Clarity Act would give us to the legislators, rather than the courts, the power to determine whether a cryptographic asset was financial security or a commodity, that which encounters less regulations, allowing cryptographic companies to offer tokens to retail investors more easily and at a lower cost. Weakened surveillance could motivate bad players to distribute their own cryptographic tokens, which makes it difficult for regulators to control industry and protect consumers.
Since his return to the White House in January, Trump has frequently criticized Jerome Powell, president of the American federal reserve, for not having reduced interest rates, which are at a range of 4.25% to 4.5%, which has aroused questions about the question of whether the central bank can maintain its independent decision after the end of Powell’s mandate next year. The reports suggested that Trump had planned to dismiss Powell.
The last element of legislation on the cryptography that Trump’s administration wishes to pass, the anti-CBDC law on the state of surveillance, could be considered as another advantage of the Fed by the president. The bill, which also adopted the Chamber last week, would prevent the Central Bank from creating its own digital currency on the grounds that this would encroach on individual confidentiality and improve government monitoring of financial companies. The Fed has not indicated the desire to create its own digital currency.
Bailey suggested that he did not want the United Kingdom to adopt a digital currency, as the European Central Bank plans to do so before the end of the decade.
Does the cryptographic industry really want all these new laws? Perhaps the clearest sign that this is in favor has been the sharp increase in the price of Bitcoin: it has increased by more than a third for the start of the year to a record of $ 123,000.
The rally pushed the combined market value of all cryptocurrencies greater than $ 4 billions on Friday, according to the Digital Assets Coingecko data supplier.
Mark Palmer, analyst of the Investment Bank The Benchmark Company, said: “The institutional funds that have been on the sidelines while waiting for this type of clarity to take place in space.”
Perhaps Crypto will finally go on the Moon, because his supporters have believed him for a long time.
