It is clear that the US is continually tightening its regulations of cryptocurrencies in the wake of FTX's crash. In the past two weeks, rumors of US cryptocurrency legislation have been substantiated.
The US SEC may outlaw cryptocurrency staking services for retail investors, according to speculations that Coinbase CEO Brian Armstrong revealed on February 9th, 2023. The US SEC said on February 10th that Kraken, a cryptocurrency exchange, will “immediately” stop providing crypto staking services to US clients and pay a $30 million fine to resolve allegations of providing unregistered securities.
According to numerous sources, US financial regulators are reportedly taking aggressive measures last week to force banking firms to refuse bank accounts to cryptocurrency businesses, severing the link between the two industries.
It has been reported today that they are aiming for BUSD, the most popular stablecoin in the cryptocurrency market. The US SEC threatened to prosecute BUSD issuer Paxos on February 13th, according to The Wall Street Journal, and the New York Department of Financial Services (NYDFS) has asked Paxos to halt issuing new BUSD stablecoins.
Furthermore, according to Binance, Paxos Trust has informed the exchange that it has been told to halt creating new BUSD stablecoins. This implies that the market value of BUSD will continue to drop over time. Several industry experts issued a warning about the widespread “chokehold” action being carried out by US regulators last week, prohibiting the interaction between crypto assets and fiat currency.
What does a “chokehold” operation entail？
As the name implies, the goal is to choke an industry. Pressure is applied by administrative and financial measures to force makes up a significant to comply, attaining the regulatory goal and marginalizing the relevant industry, particularly in the absence of movement in law or the judiciary. The entrance and outflow of fiat money and cryptocurrencies constitute the backbone of the cryptocurrency sector.
The “chokehold” strategy employed by the US government has a strong track record. When the US Department of Justice sued institutions that supported online poker operators in 2011 and 2012, the Obama administration successfully conducted a “chokehold” action, effectively marginalizing the online poker industry.
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
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