Pushing BTC and Crypto Away From U.S. Will Be a Strategic Mistake

  1. Pushing BTC and Crypto Away From U.S. Will Be a Strategic Mistake: Cato Institute.
  2. Market analysts have commented on this.
  3. Many believe crypto firms still need to create and require new risk management rules.

Cato Institute, the American libertarian think tank headquartered in Washington, D.C., has emphasized what pushing Bitcoin and crypto away could mean to the states. According to them, this would be a strategic mistake for the U.S. across multiple domains.

This concern comes amid U.S. regulators, the Federal Reserve, the FDIC, and the Office of the Controller of the Currency statement encouraging banks that use funding from crypto firms to monitor liquidity and maintain strong risk management practices to prevent runs.

Market analysts have commented on this. JPMorgan analyst Steven Alexopoulos for instance, says the joint statement from the Fed and others indicates increased regulatory concerns around the risks of serving the crypto industry and will likely limit banks’ usage of these deposits in terms of deploying into loans and held-to-maturity securities.

This statement warns that deposits the banks host from crypto firms could be impacted by periods of stress in markets, volatility, and outside factors over which crypto firms have no control. The agencies additionally encouraged banks to use existing risk management tools to guard against runs, but they still needed to create and require new risk management rules.

On the same accord, Ben Armstrong tells Twitter that the VAST majority are too pessimistic about crypto regulation. He says that It’s very Low IQ to believe the United States will allow the rest of the world to blow past us in a Finance Niche.

Atlanta Fed President Rafael Bostic on his hand says that he hopes crypto doesn’t replace the proven components of the traditional payment and banking systems. In conversation with former Kansas City Fed President Esther George at the Atlanta Fed, Bostic agreed with George’s comments that she does not see cryptocurrencies supplanting some of these more tired and true rails.

Read Also :

disclaimer read more

Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer