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Cryptocurrency regulation in the US faces criticism from both sides

As the use of cryptocurrencies expands not only in the United States of America, but practically all over the world, the pressure to solve the problems associated with holding and trading virtual currencies, or cryptocurrencies, has intensified. In particular, in the USA, there is now a discussion at the highest federal level in the Senate and Congress of the United States of America regarding the effective regulation of cryptocurrencies, with the fact that the current US legislation does not allow for sufficient control by the Securities and Exchange Commission (SEC -Securities and Exchange Commission), whose competence this is where cryptoregulation falls.

Recently, a former senior SEC official, Mr. John Reed Stark, has commented on this issue, calling on the Federal Department of Justice to become actively involved in solving crypto-regulation, as the SEC’s current enforcement capabilities are insufficient to address these issues. According to Mr. Stark, the SEC is limited to civil enforcement and cannot impose prison sentences for violations of the rules on the holding and trading of cryptocurrencies, which is why he called for the involvement of the US Federal Department of Justice, whose role he sees as crucial. On this matter, this former head of the SEC, Mr. Stark, who served in this position for 11 years, further noted that he finds an astounding lack of criminal prosecutions regarding cryptocurrencies, where holders and especially traders do not take seriously the SEC measures and regulations and the fines imposed under the SEC tariff, thus considering large and significant volume of funds in the digital currency market is having a remedial effect.

On the other hand, these steps and efforts of the US administration are facing considerable criticism from cryptocurrency traders themselves, and most cryptocurrency holders, in the event of extensive regulation to the level of existing standard investment instruments such as shares, commodities or forex markets, then consider the attractiveness of their subsequent holding in comparison with what options and properties these virtual funds represent at present. These circumstances were fully reflected in the current cryptocurrency market, when the most widespread cryptocurrency, Bitcoin (BTC), together with others, saw a decrease in its exchange value. Currently, during the European morning of Tuesday, September 26, 2023, at approximately 8:38 CET, the value of the BTC currency against the US dollar (BTC) was moving at a mutual exchange rate of USD 26,274.00 per BTC on the Coinbase digital currency market with BTC down -0.23% against the USD for the day so far.

Bitcoin (BTC) is an Internet open-source P2P payment network and also the cryptocurrency used in this network. The main uniqueness of Bitcoin is its full decentralization; it is designed so that no one, not the author or other individuals, groups or governments, can influence the currency, counterfeit it, seize accounts, control money flows or cause inflation. There is no central point in the network, and no one who can make decisions about the network. The final amount of Bitcoins is known in advance and the release of Bitcoins into circulation is defined in the source code of the network. Payments take place on the network at minimal or no cost. The network has been operating since 2009, where it was described and created by a group of people signed as Satoshi Nakamoto. Bitcoin (BTC) is the only asset that is successfully offsetting the global press side of the world’s central banks, according to analysts at brokerage firms involved in the virtual currency trade.

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