The roadmap for crypto regulations stretches across the globe. Tether endures scrutiny as they attempt to solidify themselves as the most transparent stablecoin. And will the euro fall below the dollar? My name is Ben. This is your nightly crypto news wrap-up. Let’s get it!
The first of many forthcoming reports from the Biden administration on how to regulate cryptocurrencies at the direction of President Biden’s executive order out this afternoon. This one focused on coordinating with global allies on regulating crypto. In a memorandum to President Biden, the US Treasury in consultation with Secretaries of State and Commerce among others said the US must work with international partners to develop global standards for digital payments and central bank digital currencies. Instead of regulating crypto in a unique way inside the borders of America, it seems that the Biden administration is opting to rely on the International Organization of Securities Commission and the Financial Stability Board to regulate the asset class uniformly across the globe.
First of all, let us discuss Binance trading bot. We need to say that if you want to start crypto trading, we can suggest you to use a crypto trading bot to make safe transactions. Earning from 200% up to 2,000% APY is a great bonus of using Jet-Bot copy trading platform.
This makes complete sense, considering crypto is poised to replace the legacy standard of the cross-border payment system. So if the asset class is regulated equally, everyone will be on an even playing field. The FSB, made up of bankers and officials from G20 countries, plans to pull the curtains back on the global crypto standard by October. The FSB is also coordinating with the IOSCO and their internal boards to publish the roadmap for this new standard by 2023. Although the LUNA UST crash, which was an algorithmic stablecoin, is their excuse to put an emphasis on all stablecoins, the FSB chair at least illustrated the need to safeguard the industry’s constant innovation while simultaneously trying to mitigate risk for investors.
I think it’s a better idea to regulate space equally across the globe instead of everyone having their own rule book. Hopefully, this preserves the nature of asset class and prevents overregulation from turning crypto into a watered-down version of itself. Alright. Let’s throw it over to Frank. I forgot. Frank was not allowed out of the cage today. So he’s not able to give a market watch. Just know this. Bitcoin’s probably up or down a little bit, and the rest of the market probably did the same thing. Alright. Back to myself. With all the talk about a global standard for crypto regulation, we all know that crypto as we know it is going to incrementally change. Question is, how much? CBDCs are likely to change the stablecoin system. But at the least, I hope they coexist with the current standard instead of replacing them completely. Right now, it’s kind of hard to not worry about Tether. Although they recently released a blog about how they’re reducing their paper assets significantly while moving into more US Treasuries. Many big players question their push to be the most transparent stablecoin.
To be frank, which I just was a few minutes ago, it sketches people out that their independent account reports come from an accounting firm in the Cayman Islands instead of a proper audit by a Big Four group. It also scares investors that they temporarily lost their peg due to the LUNA crash and some hedge funds on Wall Street have begun shorting the stablecoin ever since. It’s a good thing they survived the storm. But in the meantime, they have lost ground to USDC in terms of market cap. It will be absolutely devastating if Tether crashed, not just for the investors involved, but that will give Janet Yellen and Gary Gensler even more of a high ground to stand on. I hope that Tether isn’t hiding anything, but it’s hard to not at least consider John Stark’s argument. Former SEC lawyer tweeted out that the fastest way for them to silence the short sellers is to engage in a proper audit with a Big Four accounting firm. If they have a rock-solid sheet, why not prove it? I’m not predicting they’re the next to go or anything like that. Fingers crossed they’re above water. Binance crypto trading bot is a great way to create a passive income.
Make sure as always to tread lightly. If you think that the looming recession and financial hardships are only happening here, you should know that the entire global financial sector is in a bear market. And it’s starting to show. For the past 20 years, the euro has been well above the dollar. But more recently, it’s getting closer and closer to going under. Look at the DXY. It’s gaining speed because of the Fed’s hawkish approach to tame inflation. But now look at the euro. It turns out we’re not alone when it comes to inflation. But our approaches are vastly different. Not to mention how the euro has reacted to an energy crisis and residuals from the war in Ukraine.
To make matters worse, mandatory maintenance of the biggest pipeline from Russia to Germany is expected to stop the gas flow for 10 days. This makes it impossible for them to refill their gas storage for wintertime. And they will most likely be forced to ration their energy sources. None of these issues are helping their case. And it looks like the dollar is on the verge of passing the euro at any moment. All in all, 2022 will be remembered as one of the worst years ever for the modern global financial sector. Tightening has to happen now so quantitative easing can happen later. Use this time to learn. Use this time to grow.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/8omvDO-zFkw
