Cryptocurrency prices are mostly negative these days and this appears to be the result of actions by various US government agencies. Both the SEC, NYFS and OCC have taken action against cryptocurrency.
Kraken is fined and has to stop hitting
Last night it was announced that cryptocurrency exchange Kraken has been fined $30 million. The stock exchange can no longer offer strike services either. The Securities and Exchange Commission (SEC) accused Kraken of violating securities laws. The exchange allegedly sold unregistered securities, and the SEC has no authority to do so.
Kristin Smith, president of the Blockchain Association, wrote a statement in support of Kraken. His foundation is a kind of crypto lobbying group in Washington and represents more than 100 companies. She says the SEC’s actions are part of an ongoing assault on a thriving industry.
“The SEC continues its assault on U.S. cryptocurrency companies and private investors, regulating the potential of public blockchain networks in the United States through enforcement and subversion.”
She also sees the importance of the strike in:
“Staking is an important part of the crypto ecosystem, allowing individuals to participate in decentralized networks and increasing opportunities for investors to generate passive income.”
Herster Peirce, an SEC official, also disagrees with his employer’s actions.
NYFDS is pursuing Paxos
The SEC isn’t the only US government agency exercising its muscles. The New York Treasury Department (NYDFS) is investigating stablecoin company Paxos. Paxos is the company behind Binance’s stablecoin: Binance USD (BUSD).
However, the details of the investigation were unclear, but Bloomberg quoted a spokesman as saying:
“The department is in constant contact with regulated entities to understand the vulnerabilities and risks to consumers and to the institutions themselves due to the volatility of the crypto market we are facing.”
No more cryptocurrencies in banks
There are also rumors that the Office of the Comptroller of the Currency (OCC) has asked Paxos to withdraw its national trust bank application.
Journalist Samuel Andre reports that the US Federal Reserve and OCC are in the middle of a massive crackdown on cryptocurrency. An anonymous source told Andrew, “What is happening here is draconian and destined to wipe out cryptocurrencies.”
The journalist explained that the Fed and OCC are even targeting Morgan Stanley and Custodia, as well as cryptocurrency-friendly states like Wyoming. Another source tells Andrew that Paxos and others have been asked by the OCC to withdraw their application for a banking license or face rejection on Friday.
“Investors are beginning to worry that their crypto portfolio companies will be bailed out en masse,” Andrew quoted another source, continuing, “The OCC will soon produce a document that is considered so draconian that many OCC officials will leave. ”
Bad for the United States
earlier this week warned Coinbase’s CEO said there will be an exodus of talent and innovation from the United States if this continues.
“We have heard rumors that the SEC wants to end cryptocurrency attacks on US retail. I hope that’s not the case, because I think it would be a terrible path for America if that happened.”
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
