The cryptocurrency market went through a whirlwind of challenges in 2022 and it appears as if there won’t be any respite for this year as well. As a result of successive regulatory roadblocks and the subsequent failure of notable companies, crypto has found itself in a queer position which almost seems like an orchestrated effort being pulled off to shun it down.
Binance CEO Raises Concern On Crypto
A similar opinion has been voiced by Binance CEO, Changpeng “CZ” Zhao, as well. In a recent tweet, he speculated that — considering all that was happening in the crypto space — it appeared as if a coordinated attack was taking place to “shutdown crypto friendly banks” which in the long run, would be detrimental for the industry as a whole.
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However, he points out that although these attempts have impacted crypto to some extent, traditional financial institutions are currently failing, whereas blockchains remain operational due to their decentralized nature, which prevents any central authority from taking command. As can be seen in Bitcoin’s price, the flagship cryptocurrency has been able to hold on to its coveted $20K level even after the deluge of regulatory hurdles, negative press reports and media coverage.
In recent times, prominent U.S. authorities including the Federal Reserve, the OCC, FDIC, SEC, NYAG, NYDFS and the DOJ, alongside influential members of Congress seem hell-bent on destabilizing the growing crypto industry which has been challenging the traditional market for some time now. What is being rumored as an “Operation Choke Point”, the US is making it increasingly difficult for crypto businesses to operate and sustain.
Does Crypto Pose A Threat?
Cryptocurrency has recently established itself as a viable alternative to a number of conventional financial products and services available in the country. For instance, when compared to the meager 0.1% interest rates on savings accounts offered by U.S. banks, the staking feature of cryptocurrencies enables users to earn rewards of up to 25% annually in certain scenarios. As a result of this, the SEC recently penalized Kraken, a California-based crypto exchange, and even forced the firm to suspend its staking operations for U.S. customers.
It’s still important to emphasize that, as of right now, there has been no real evidence of a government conspiracy to leverage political authority in order to shut crypto off the US banking rails. However, with back-to-back crypto crackdowns and the development of certain scenarios have certainly raised doubts in everyone’s mind as it’s hard to pass it off as a mere matter of coincidence.
Also Read: Bitcoin Price Unfazed By USDC Stablecoin Crisis, Signals At Upcoming Bull Run
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The ex-Democratic presidential candidate against Trump, Hillary Clinton, recently picked a rather conservative stance about crypto, levying the industry as a threat to global economic stability. She spoke remotely at the Bloomberg New Economy Forum on Friday in Singapore, highlighting exclusive challenges that global governments are currently dealing with, including disinformation and artificial intelligence. Furthermore, Clinton put special emphasis on cryptocurrencies under these categories, claiming that they hold the potential to destabilize entire nations. According to Clinton, the decentralized market may take over entire economies, by starting small but gradually overpowering all aspects of a centralized system.
“One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency — because what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger”, said Clinton.
Hillary Criticizes Russian Government for employing hackers
Hillary also accused Russian President, Vladimir Putin, of employing “a very large stable of hackers and those who deal in disinformation and cyberwarfare”. Back in 2017, Clinton had already raised suspensions against the Russian authorities, claiming that they had interfered with her candidacy by hacking into her campaign’s internal emails and later coordinating their release on WikiLeaks.
“With his oligarchic coterie he has utilized many non-state actors to personal as well as nationalistic goals, and I think that’s going to become a greater and greater threat”, she added.
However, Hillary is not the first official to blame the Russian government for having their hands dirty with the dark web. Earlier this June, US President, Joe Biden warned the Russian President that any breaches from Russia into the US infrastructure and databases will be cause for retaliation. While the Russian government did reciprocate, showing loyalty towards the US by commissioning a tracing system to track cryptocurrencies and analyze behaviors and movements of traders to decrypt their identities. Nevertheless, despite maintaining an alliance, both countries continue to have disputes.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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