Is the U.S. cooking up a new ace in the cryptocurrency market?
Journalists of the world media paid attention to Jerome Powell's online speech last night to students, at the Town Hall conference. The Fed chief noted the ever-growing importance of cryptocurrencies, dropping a phrase about the Treasury studying the hypothetical issue of storing part of the country's reserves in digital assets.
Such a decision would literally "explode" the cryptocurrency market, repeating the situation of 2017, a 20-fold increase in the value of BTC, which received the slang name "acemuna" (growth to the moon).
Is the U.S. cooking up a new ace in the cryptocurrency market?
Paradoxically, it is the Fed that is behind the current correction of Bitcoin at the moment. The digital currency is losing value amid a sharp strengthening of the fiat dollar before the release of the Minutes. This document will show the distribution of votes and comments of 18 Fed members at the last meeting, where the future U.S. monetary policy was determined.
The U.S. Financial Regulator's decision to roll back support measures for the markets in the form of monthly injections of $120 billion will have a negative impact on all types of assets, fiat and digital currencies. The fall won't be long, next week the U.S. Congress may come "to the rescue" of Bitcoin.
The U.S. Financial Regulator's decision to roll back support measures for the markets in the form of monthly injections of $120 billion will have a negative impact on all types of assets, fiat and digital currencies. The fall won't be long, next week the U.S. Congress may come "to the rescue" of Bitcoin.
If Powell is only theorizing about supporting cryptocurrencies, the House of Representatives may well have a "mini-Tuzeman," as soon as possible.
First, congressmen forced the U.S. Treasury Department to write explanatory guidance exempting all participants in the crypto market, except brokers, from filing tax returns. Senators Tom Emmer and Darren Soto decided to go further and introduced a bill simplifying FATF guidelines for miners, node operators and hot wallets.
First, congressmen forced the U.S. Treasury Department to write explanatory guidance exempting all participants in the crypto market, except brokers, from filing tax returns. Senators Tom Emmer and Darren Soto decided to go further and introduced a bill simplifying FATF guidelines for miners, node operators and hot wallets.
Now, the FATF is trying to achieve complete de-anonymization of all blockchain transactions by forcing participants in the crypto industry to implement the "travel rules" option. It applies to fiat transfers, where a bank will not accept a payment without verified data.
"Travel rule" will render cryptocurrencies meaningless, so the congressmen's initiative will be a real salvation of decentralization principles in the innovative financial industry. By the way, this is not the last positive initiative of the House of Representatives, they will also reconsider the amendment removing digital assets from the Securities Act.
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