Crypto can’t become what many of its proponents want it to be without banks, but U.S. regulators are circling the wagons around the banking system they oversee. That barrier is only getting wider as the Federal Reserve and other agencies turn away crypto firms trying to link with the traditional financial system.
Paxos and Protego both received conditional approval to convert into a nationally chartered trust bank in early 2021, but the final status of their applications has hung in the balance longer than the allowed 18-month deadline.the rumors were untrue, and a source with knowledge at Paxos also confirmed with CoinDesk that Paxos had not been asked by the OCC to withdraw its application, nor had the application been denied.
But 2022 was a poisoned pill that may knock digital assets down for a long time. A general response from U.S. regulators to step back from 2022’s mayhem of gigantic hacks, bad ideas, laundered money, manipulated prices and gross fraud is beginning to harden into policy. Whether the administration's momentum will be checked by eventual legislation that makes allowances for crypto innovations, he said,"My gut is that Congress will win."“Agencies have been pretty open about the fact that they are coordinating and working together on crypto and digital-assets issues,” said Grant Butler, a Boston-based partner at law firm K&L Gates.
federalreserve Regulation like this is only making everything worse
federalreserve It's certainly an interesting issue. How do you think the current situation affects DeFi's long-term growth prospects?
cheyenneligon jesseahamilton Mass adoption will happen when everyone understands the inherent value behind it, when everyone is educated on the benefits/use and when infrastructure is put in place to efficiently/safely utilize it. Until we make the space appealing for everyday use, adoption will be slow.
cheyenneligon jesseahamilton The actions of the US banking regulator are the reason why people are adopting bitcoin in the first place - the freedom of ownership of a sound currency. As a result, the US will trail behind the rest of the world in bitcoin adoption, which is a sad sight to see.
cheyenneligon jesseahamilton How to help crypto: Page wages in it and demand payment in it. Done.
cheyenneligon jesseahamilton Crypto, having become enticed by, infatuated with, and married to fiat, acts like it never had a life before fiat came along. The question is whether it will survive the divorce…
cheyenneligon jesseahamilton Operation Choke Point 2.0 will fail because there is nothing to choke. Crypto doesn't breathe air. It is a decentralized autonomous network fueled by electricity. Those trying to kill it will die trying.
cheyenneligon jesseahamilton Oh boy! We can't wait to see what wild and crazy ideas you have in store for us this year, MrBeast! Bring it on! 🤯 mindblown
cheyenneligon jesseahamilton It’s too late, on and off ramps are regulated in other countries. The U.S. will just lose the ability to police crypto efficiently. They are essentially shooting themselves in the foot.
cheyenneligon jesseahamilton US will get left behind