FCA Right to Propose Stop to Marketing Crypto as ‘Inflation Resistant,’ UK Industry Members Say

Members of the U.K. digital asset space seem to largely support a proposal by the country’s financial watchdog to move companies away from promoting crypto as an inflation hedge.

“We also expect firms to consider the potential harm to consumers and be confident that any claims made by the issuer are genuine,” the guidance said. “Firms should not use terms that could mislead consumers such as ‘inflation resistant.’” “In a strict sense, the FCA is correct,” said Ryan Shea, economist at U.K.-based crypto index trading Trakx. “Cryptocurrencies are not inflation-protected in the same way as anor an inflation-protected Treasury bond, whose value mechanically increases in line with the specified inflation index.”

“Due to bitcoin's relatively short existence, we have to rely on the fundamental concepts of what it represents as an asset, so theoretically, it being of limited supply while being priced in U.S. dollars, it should act as an inflation hedge,” Butterfill told CoinDesk.

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SEC lawsuits against cryptocurrency companies raise questions about industry's futureTwo recent lawsuits filed by the U.S. Securities and Exchange Commission against the world’s biggest cryptocurrency exchanges have reopened tensions between the government and a volatile industry that has been marred by scandals and market meltdowns. The lawsuits against Binance and Coinbase are the latest in an ongoing tussle between government officials who describe the crypto industry as the “Wild West” and creators of digital assets who seek to legitimize cryptocurrency as a currency of the future. Industry leaders say that with their latest actions, U.S. regulators are now more clearly signaling that they seek to ensure that cryptocurrency has no room in the traditional financial system.
Fonte: AP - 🏆 728. / 51 Consulte Mais informação »