Crypto Regulator’s are Tightening the Belt

Financial markets took a slight dive slide downwards earlier in the week in the wake of inflation numbers coming in a bit hotter than expected. This a reaction, that seems a bit exaggerated given inflation numbers actually came in lower than those of last month (6.4% this month vs. 6.5% last month).

In other words; things are going in the right direction but perhaps not as quickly as we are all hoping for.

The disappointment also sent BTC down on the day of the news but has since recovered nicely and even broke out to the upside trading just above 24.000 USD as of now.

The crypto ecosystem is currently facing mounting pressure from regulatory authorities in what the industry has labeled as Operation Choke Point 2.0.

Although the titling of the said article may be a bit too harsh, recent moves by authorities in the US definitely seem like a coordinated effort to clamp down on crypto as an industry.

The Securities and Exchange Commissioner Gary Gensler is the one leading the battle.

First, it was Kraken’s $30 million settlement for offering its crypto asset staking-as-a-service program. Then it was the BUSD stablecoin offered by Paxos, which is currently being scrutinized for being a security, and now the whole industry is sitting tight waiting for the next bomb to be fired.

BUSD slightly de-pegged from the US dollar following this news, although CZ Binance confirmed through a tweet that funds are fully backed and redeemable.

A turn to the brighter side, regulatory pressure on crypto is part of forging the resilience of this industry, increasing decentralization and jurisdictional dependency.

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Entrepreneur and investor in the technology space. Head of Research at Bitcoin Global Macro, a bitcoin focused macro research institute. Founder of one of the first cryptocurrency focused investments funds in Europe. Public speaker and features on major news outlets such as CNBC, Bloomberg, and Forbes.