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- U.S. officials are working to create a “regulatory perimeter” for cryptocurrencies
- Cryptocurrency woes unending and values fall drastically
- The Securities and Exchange Commission (SEC) chair points to gaps in the system
The cry for regulation of cryptocurrency trade is increasing, and U.S. Financial authorities are all set to regulate the cryptocurrency market. The highly decentralized structure of cryptocurrency makes it impossible to regulate or monitor. There are growing concerns that lack of regulatory controls will lead to unscrupulous elements causing harm to investors.
Creating a “regulatory perimeter” for cryptocurrencies
Acting Comptroller of Currency or OCC, Michael Hsu, was talking to Financial Times. He said that U.S. officials are working to create a “regulatory perimeter” for cryptocurrencies. Hsu added that coordination between different agencies is of utmost importance, and U.S. officials are working to make this possible.
A lot of ups and downs for the cryptocurrency market
This year came with a lot of ups and downs for the cryptocurrency market. Elon Musk, Tesla’s CEO, invested in cryptocurrency, leading to its BTC values in February. Tesla invested $1.5 billion, which surged the value of Bitcoin(BTC) to a record high of $64,863.10. However, events later led to a steep fall in the prices of most cryptocurrencies. The call by the Biden administration to tax income generated by cryptocurrencies started the slide, which was aggravated by Elon Musk’s statements. Musk, an avowed fan of cryptocurrency, later took a U-Turn and advised caution while investing in cryptocurrencies. China’s regulators’ crackdown on mining was the last straw.
The series of events led to a steep fall of Bitcoin values which touched 30,000, representing a fall of 53.75% in just 2 weeks. The digital currency market cap fell below $2 trillion to trade as low as $1.2 trillion.
Other financial regulators of the U.S. government also stepped in, and a debate started on how best to protect investors in the cryptocurrency market. The Securities and Exchange Commission (SEC) chair Gary Gensler told a House Committee that there are considerable gaps in the present system which need to be urgently filled. An urgent need was felt to designate which regulator should oversee cryptocurrency exchanges. Gary Gensler added that the Treasury Department is focusing on money laundering and illicit activity in the cryptocurrency market.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
