which 5 issues should crypto investors pay attention to?

Chain was obtained App Note: This article from MarketWatch, Author: Chris Matthews; Original title: Bitcoin, crypto investors will be watching these 5 questions facing the Biden administration Translator: Shirley

The recovery of the stock market from the crash caused by the new crown pneumonia last year proves that the federal government has injected unprecedented stimulus funds into the economy in the past 12 months, but few asset classes have rebounded from the financial market better than cryptocurrencies. Benefit from it.

Who will become the auditor of the currency?

The agency responsible for franchising and overseeing national banks is usually the lesser-known federal financial regulatory agency. But Jackson Mueller, director of policy and government relations at crypto consultancy Securrency, said that the U.S. Office of the Comptroller of the Currency (OCC), under the short-term leadership of former Administrator Brian Brooks, has supported the crypto economy and The integration between traditional financial systems has attracted the attention of the crypto community.

In addition, Mehrsa Baradaran, a professor of law and an expert on racial wealth gap issues, became the most promising candidate for this position, but given her previous skepticism of cryptocurrencies, crypto investors This is not very optimistic. Baradaran said to the Senate Banking Committee in 2019, “Although I am as worried about the failure of the banking industry as many people in the cryptocurrency industry, I don’t believe that cryptocurrency will solve the banking industry’s inclusive finance and equity issues. The best solution.” In her view, Congress should instruct the Federal Reserve to build a digital payment infrastructure for all Americans.

Will cryptocurrency threaten financial stability?

The OCC will not be the only financial regulator concerned with the use of stablecoins, as more and more observers claim that these financial instruments enable the development of a new “shadow” banking system and further threaten the stability of the U.S. financial system. Representative Rashida Tlaib, a Michigan Democrat, recently submitted a bill requiring stablecoin issuers to hold a bank license, have insurance from the Federal Deposit Insurance Corporation (Federal Deposit Insurance Corporation), or The Federal Reserve keeps reserves, “to ensure that all stablecoins can be converted into U.S. dollars at any time on demand.” Rohan Grey, president of Modern Money Network, participated in the drafting of the bill. He likened stablecoins to money market mutual funds, which underwent tremendous pressure during the 2008 financial crisis.

Gray told The Block in December last year, “We are studying the history of shadow banking and some entities. They claim to have invented a tool that can be circulated as widely as money and used as money. In most cases, it can be used as money. They believe that they are as safe and stable as money. But when the crisis comes, these claims prove to be empty, they become a huge source of systemic risk. And inevitably, they will be rescued in the name of protecting consumers. The result is the privatization of gains and socialization of losses.” The issue of financial stability means that in the next few years, other regulatory agencies, including the Federal Reserve and the Treasury Department, may supervise stable coins.

How will the government curb crypto money laundering?

The most pressing regulatory issue that crypto investors will have to face is that the Financial Crime Enforcement Network (FinCen, the U.S. Department of the Treasury’s department responsible for combating money laundering and other financial crimes) is about to make a decision to require banks and other intermediaries to conduct certain crypto transactions. Keep records and verify customer identity Spark Global Limited.

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