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2023-07-10 15:54:17

George23 on Nostr: The chairman of the US central bank pleased the fans of cryptocurrencies. No one ...

The chairman of the US central bank pleased the fans of cryptocurrencies. No one expected this statement

World authorities from the traditional financial sector often do not speak positively about cryptocurrencies. Even more fans of digital currencies were surprised by the statement of the chairman of the American Central Bank, Jerome Powell. According to the report, Coingape expressed the belief that cryptocurrencies have demonstrated sustainability as an asset class in the United States.

Jerome Powell acknowledged that cryptocurrencies are holding value

Powell's statement came as part of the presentation of the US Federal Reserve's (FED) semi-annual report on monetary policy. He pointed to the strength of the industry as investors stayed in the market without selling their positions despite the decline in market capitalization. Powell acknowledged the ability of cryptocurrencies to retain value over the long term.

The presentation also covered the negative factors that caused the decline in the market capitalization of cryptocurrencies. MP Warren Davidson pointed to the volatility and lack of legal clarity in the industry. He mentioned two bills as a partial solution. One focuses on stablecoins and the other on the structure of the digital asset market.

Cryptocurrencies are facing regulatory pressure in the US

Although there is still an insufficient regulatory framework for cryptocurrencies in the US, pressure from the Securities and Exchange Commission (SEC) is steadily increasing. The SEC filed a lawsuit first against Binance, and the day after on June 6, 2023, against Coinbase as well.

Exchanges reportedly operate cryptocurrency trading platforms in the US as unregistered national stock exchanges. Some cryptocurrency exchanges such as Bittrex have closed their operations in the US due to the strict regulatory environment.

Where are American investors moving capital?

The market reacted to the lawsuits immediately, and investors driven by fears moved capital away from the country. The market capitalization of stablecoins in the US fell by 35%, and in 2023 analysts noted their outflow worth up to 15 billion dollars. Allegedly, more than half of the bitcoins have already left the US due to unclear regulations.

Investors are looking for countries that are welcoming and do not restrict the cryptocurrency market very much. The best conditions are currently found in eastern countries. Asian economies are adopting dozens of major cryptocurrency companies. It is no wonder that American The chairman of the US central bank pleased the fans of cryptocurrencies. No one expected this statement

World authorities from the traditional financial sector often do not speak positively about cryptocurrencies. Even more fans of digital currencies were surprised by the statement of the chairman of the American Central Bank, Jerome Powell. According to the report, Coingape expressed the belief that cryptocurrencies have demonstrated sustainability as an asset class in the United States.

Jerome Powell acknowledged that cryptocurrencies are holding value

Powell's statement came as part of the presentation of the US Federal Reserve's (FED) semi-annual report on monetary policy. He pointed to the strength of the industry as investors stayed in the market without selling their positions despite the decline in market capitalization. Powell acknowledged the ability of cryptocurrencies to retain value over the long term.

The presentation also covered the negative factors that caused the decline in the market capitalization of cryptocurrencies. MP Warren Davidson pointed to the volatility and lack of legal clarity in the industry. He mentioned two bills as a partial solution. One focuses on stablecoins and the other on the structure of the digital asset market.

Cryptocurrencies are facing regulatory pressure in the US

Although there is still an insufficient regulatory framework for cryptocurrencies in the US, pressure from the Securities and Exchange Commission (SEC) is steadily increasing. The SEC filed a lawsuit first against Binance, and the day after on June 6, 2023, against Coinbase as well.

Exchanges reportedly operate cryptocurrency trading platforms in the US as unregistered national stock exchanges. Some cryptocurrency exchanges such as Bittrex have closed their operations in the US due to the strict regulatory environment.

Where are American investors moving capital?

The market reacted to the lawsuits immediately, and investors driven by fears moved capital away from the country. The market capitalization of stablecoins in the US fell by 35%, and in 2023 analysts noted their outflow worth up to 15 billion dollars. Allegedly, more than half of the bitcoins have already left the US due to unclear regulations.

Investors are looking for countries that are welcoming and do not restrict the cryptocurrency market very much. The best conditions are currently found in eastern countries. Asian economies are adopting dozens of major cryptocurrency companies. It is no wonder that American investors massively move capital to these jurisdictions.
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