Government Restrictions Elicit a Collective Uh-Oh Across the Cryptocurrency Universe
It has been fascinating to watch history being made before our eyes. Although some of this history is going to be expensive for some people. While currently all the technology headlines are centered around ChatGPT and similar algorithms, it wasn’t long ago that the tech world was all about cryptocurrency. The money being invested and the profits being taken seemed just too good to be true.
And it was all guaranteed with blockchain security. Celebrities galore were all in on this financial profit machine.
Then came FTX.
Well, it’s not the end of the cryptocurrency autobahn, but you can see it from here. Here, is an article from axios.com that tells us the story of the state of crypto on some levels, which are rather low at this point. Now that Washington has stepped in, cryptocurrency could be on its last legs.
The vibes from the White House and federal agencies have been somber at best for anyone trying to run a cryptocurrency business. Over the last two weeks, government officials repeatedly gave crypto the cold shoulder.
First, a crypto-friendly bank was firmly denied its request to join the Federal Reserve system. Custodia Bank, which believed it did everything by the book, was blindsided. On a larger scale, the Fed’s rejection of Custodia was a major blow for an industry that’s always envisioned disrupting traditional finance. To do that, it needs direct access to the systems that underpin it, including the Fed’s payment network. Uh-oh.
Then Mr. Powell over at The Fed informed all banks that any activity with cryptocurrency must be reported to them first for approval. Uh-oh.
Here is the bottom line:
Last March, the Biden administration put out a call for its agencies to study the topic of cryptocurrency. Its latest message suggests that it’s done studying, and it’s come to a conclusion: We don’t like it.
read more at axios.com