US financial watchdogs for a sound regulatory framework

Financial watchdogs around the world have gone to great lengths to identify gaps in the crypto market with a view to developing a robust regulatory framework. The US authorities also brainstormed on the best strategies that could be used to protect investors and make the crypto industry safe for everyone. US Federal Reserve Chairman Jerome Powell recently commented on how cryptocurrencies pose a risk to financial stability. To prevent this, more rules had to be enforced, especially in light of the insane popularity of cryptocurrencies this year. In addition, the US Treasury Department also expressed its concern that wealthy individuals are turning to cryptocurrencies to evade taxes. To address this, the Treasury recommended that US crypto-exchange companies report large transfers to relevant regulators. Michael Hsu, the currency's deputy controller, told the Financial Times this week that he hopes US officials from various regulatory agencies will come together to create what he describes as a "regulatory environment" for crypto. Get Money Signals! Time-Critical Regulatory bids come at a time when Bitcoin is experiencing crazy price movements. After an ATH of $63,500 in April, the currency lost about 50% of its value in May when the coin dropped to around $30,000. Jerome Powell expressed his concerns about cryptocurrencies and their threats to financial stability. He also expressed cautious support for the Federal Reserve, which is investigating the launch of its own digital fiat, which could be an important step towards creating a central bank digital currency in the US. Powell also expressed his concern about the risks of crypto innovations for both investors and the entire financial industry. Powell's comments suggest that the Federal Reserve is looking for ways to deal with the popularity of cryptocurrencies and their impact on traditional financial models. C.

Join the Discussion

  • BrokerEUR/USD
    CMC Markets 0.7pips. (variable) margin: 3.33%
    ETX Capital 0.6pips (variable) margin: 3.33%
  • Back to top