I am still marveling at how slowly this crackdown is transpiring given the threat to Uncle Sam. Ultimately, I expect crapto to be pushed to the margins by CBDC. Morgan Stanley with the update.
A recent White House report had a negative view on crypto, while citing advantages in using US dollar banks for payments. The SEC seems to view all cryptos apart from bitcoin as a security. Crypto services may have to register or operate elsewhere. What is the path from here? Are we headed for a centralised system using a CBDC?
What happened? FTX’s collapse late last year has heightened US government concerns on crypto assets in respect of their speculative tradingnature and potential for crypto to be a competitor to the US dollar banking system. A series of regulator actions began with a joint statement by the Fed,FDIC and OCC, issued on January 3rd 2023, with the aim of reducing the exposure and links between traditional banks and crypto. Two banks (Silvergate and Signature) that offered access to USD payments for crypto companies have closed, making it more difficult for fiat US dollars to move into crypto. The White House’s recent report on digital assets highlighted that the SEC has expanded capabilities to bring entities under compliance – noting, however, that “some crypto assets appear to be here to stay”, including bitcoin.
