Tuesday, November 30, 2021

Libra, ETFs, countries circumventing sanctions: Will these push US against crypto?

The Takeaway:

The US regulators have emerged as the unbreakable barricades in the crypto ascension. The intense sanctions have forced the countries to go the other way round and paved the path for severe alternatives involving escaping the regulations rather than following them.

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The US House of Representatives Committee on Financial Services is scheduled for a crypto discussion with the Securities and Exchange Commission (SEC) Chairman, Jay Clayton, Hester Pierce – the Crypto Mom, and three other commissioners on 24th September. 

 

The US Senate will discuss crypto

The US authorities’ strong stance on crypto regulations is no enigma. More, the announcement of Libra’s launch quaked the regulators, ascending their focus on the cryptocurrencies. Unveiled yesterday, the memorandum is titled as “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat.” The session will undertake the SEC’s actions around the space of digital money, ETFs, and Facebook’s crypto project. 

 

Libra’s execution is a delusion

Libra has achieved enormous infamous attention. The execution of the crypto coin is on an entirely on a switchback path. Where the majority considers it as the dominant threat, a few believe it to be a revolution; but every patron wonders whether it will see the light or become a face just in the books. 

 

Libra will not launch without US support

Mark Zuckerberg reportedly confessed that he would not launch his crypto coin anywhere in the world if the US regulators don’t support him. Intending to win over the senators, the social media chief attended meetings in Washington to discuss the concerns related to privacy, competition and more. Although the Senator appreciated Zuckerberg’s acknowledgment of concerns, they did express the unclear signals received about Libra’s launch if the US forbids it. 

Seeking to turn every page in his favor, Zuckerberg also privately met Donald Trump. Since its declaration, the facebook coin has attracted more criticism rather than appreciation.

 

Bitcoin ETFs launch require improved regulations

The ETFs have failed to come out of the SEC’s rejection. The SEC Chairman, Clayton shed light on his views that bitcoin would require more better regulations for its trade on major exchanges. The commission has been rejecting the proposals for almost three years now. However, the cards might have turned this time, but the firm itself withdrew the application. 

 

VanEck withdraws ETF application

Chicago Board Options Exchange’s equity exchange, BZX removed its proposal of VanEck/SolidX, the bitcoin ETF just before a month of the decision. The platform noticed that Bitwise was the only exchange standing in the same queue and predicted that it would be improbable to expect approval. The US regulators have raised sky-high bars for the crypto world, because, if we observe, it was just the assumption that made VanEck make such a move of stepping backward. 

 

Countries launch their own coin to escape US sanctions

The US regulations stand as a barrier which every crypto involved nation wants to cross but would instead take, or construct the road of escaping it. The Foundation for Defense of Democracies (FDD) reported to caution against the scenario where nations would inaugurate their own cryptocurrency backed by major commodity exports such as oil, etc. to avoid coming face to face with the US sanctions. Today, the time no more stands still for those who have been declined by the lawmakers of the United States. 

 

Is North Korea developing its own crypto coin?

It is predicted that North Korea, the alleged thief of the digital money, is in the initial stages of developing its own virtual coin. I wonder how revolutionary will this be for the world of cybercrimes and illicit acts as the country has shown boundless interest in cryptocurrency hacking, cryptojacking, and more. In the nation of sole dictatorship, it is quite confusing that DPRK would opt for a “decentralized” asset. 

 

The US bans Venezuelan Petro

Venezuela launched Petro, its cryptocurrency to avoid crippling international sanctions. However, its efforts couldn’t bring much fruit as the US has signed an executive order banning the use of Petro. Before this, the country declared a ban on e-cigarettes which was further related to a possible approaching ban on bitcoin by Thomas Lee. The antagonistic behavior of Trump towards cryptocurrencies is an open book as the president has brazenly declared his unlikeliness of bitcoin. 

 

Russia maintains fiscal relations through crypto Ruble

The US had imposed numerous sanctions on Russia due to its involvement in provocative incidents. It disconnected Russia from the SWIFT banking network. To grow above these regulations, Russia took a flight in the crypto plane and evolved their coin called CryptoRuble to avoid getting eliminated from the financial relations with the rest of the world. 

 

China set to launch its crypto

China sustains a love-hate relationship with digital currency. The on-going trade war with the US enforced the nation to stand alone from the regulations and sanctions executed by America. At present, the launch of China’s cryptocurrency is not far. The country is all set to bring its so-called virtual coin into action.

Cuba has also released its growing interest in crypto adoption and evolution.

 

The UK suggests cryptocurrency for world trade

Besides this, the governor of the Bank of England proposed the global use of a single cryptocurrency to carry world trade. He suggested that the over-dependence on the US dollar must end as it gives a lot of power to the nation to affect the world at whole. 

 

What do you think?

The countries are circumventing the US sanctions, and this might force the US regulators to initiate severe actions against the crypto world. Do you think America poses a threat to the cryptocurrencies?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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