The war on crypto has shifted from the regulatory front to the criminal side. This is due to a lack of regulation, which has led to an increase in crime and fraud, as well as the rise of cryptocurrencies being used for illicit activities.
The new monetary system 2021 is a new project that will be released in 2021. It will be based on the new monetary system and it is designed to compete with the current financial system.
Finally, barring any big shocks from US Securities and Exchange Commission Chair Gary Gensler, the US is set to establish its first bitcoin-related exchange-traded fund (ETF). …
This is significant because of what has happened in the gold market in recent years, where there is far more paper gold in the system than actual gold, and we believe that this is a major reason for the precious metal’s underperformance during a period of relative uncertainty and higher inflation expectations.
It will be fascinating to watch whether any of the current ETF ideas that are really backed by bitcoin get approved by the SEC.
However, it would be reasonable if they did not, citing the fact that institutional bitcoin custody solutions are still new and unproven.
Bakkt has returned!
This news has received less attention than the ETF, but it’s worth noting that the bitcoin custody solution that was designed especially for Wall Street is coming public today via a special purpose acquisition company (SPAC).
To be honest, there hasn’t been much coverage of this, nor have the volumes of Bakkt bitcoin futures contracts, which, unlike the ProShares ETF, are backed by real bitcoin. They probably would not have gone public if it hadn’t been for the SPAC transaction.
Nonetheless, having a publicly listed company that holds bitcoin may alleviate some of the SEC’s worries about a spot-backed ETF.
Even if it doesn’t work, the SEC should ultimately be swayed by the latest news that US Bank would custody bitcoin. Bitcoin, as they say, is unavoidable.
Shift in the battle
That isn’t to argue that the crypto industry as a whole is inaccessible. All of this, and more, seems to indicate that the battle against cryptocurrencies is reaching a crucial juncture.
Whereas owning bitcoin or enabling transactions was formerly frowned upon by US institutions and authorities, we can now see that they are considerably more at ease with bitcoin itself. Regulators are now focusing their attention on the DeFi sector.
It’s fascinating to note how Fitch Ratings Inc. has issued a strong warning against stablecoins on this day of all days.
Of fact, Fitch is just reiterating worries expressed lately by Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell, or J-Pow, who both view stablecoins as a possible threat to global financial systems if they are not reined in.
They have every right to be concerned. With the DeFi lending market gaining traction, investors are often able to earn far higher yields by holding stablecoins than they would in the traditional bond market, and if DeFi continues to grow, it could seriously undermine the Fed’s ability to manipulate markets through interest rate suppression.
DeFi, in our view, will assist to heal markets rather than damage them, although it may take time for authorities to realize this. For the time being, we’re celebrating a big success after defeating Bitcoin, but investors should be vigilant when it comes to crypto.
The United States’ legislators have yet to establish any digital asset rules of the road, and until they do, the country will be left behind.
The will digital currency replace paper money is a question that has been debated for decades. In recent years, the war on crypto has shifted from one of government regulation to one of adoption and usability.
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