By Hassan Mehmood (Saudi Arabia)
As a result of recent actions by regulators, some market observers claim that they are just targeting retail crypto firms rather than Bitcoin and other potential cryptocurrencies.
Mike Novogratz, the CEO of the investment firm Galaxy Digital, pinpoints an interesting point that the regulatory authorities of the United States want to regulate crypto companies first that play an important role in transferring Bitcoin and other digital assets to the citizens of the country.
Treasury Secretary wants Regulation
Novogratz claimed in his recent interview with CNBC that the US Treasury Secretary Steven Mnuchin wants to regulate the cryptocurrency sector. In order to create better rules and regulations, it is needed to first regulate business firms that are dealing with the buying and selling of crypto assets. According to Novogratz:
“These regulations really are hitting the stablecoin market and they are not actually designed to go after Bitcoin and Ethereum per se; they are designed for the companies that traffic in them. And those are mostly companies in retail.”
Recently, the Financial Crimes Enforcement Network (FinCEN) rolled out a crypto proposal, which make it necessary for all crypto-related firms to store information of transactions to respective wallets. With the proposed regulations of the FinCEN, Galaxy Digital CEO is not satisfied at all and also explained the reasons behind his dissatisfaction. According to him, the new proposal will pour negative impacts over the US dollar, and it is also an attempt to undermine innovation. It will also stop the development of productive stuff in the crypto space. “This is anti-dollar. It boosts China in lots of ways. And it is anti-innovation. It is going to push a lot of the cool stuff that’s happening in crypto offshore,” he added.
Also read:Novogratz has some hopes from the newly elected president Joe Biden and his team that may roll out crypto-friendly rules and regulations. Trump does not like Bitcoin at all as he accepted it in one of his tweets.
Over the recent few months, US regulators have started to crack down on many cryptocurrency companies. Despite regulatory pressure, the bullish rally of the top digital asset is continued successfully. Following the flagship cryptocurrency, other cryptocurrencies have also performed outstandingly over recent weeks.
The US has delayed in rolling out a comprehensive regulatory sandbox for crypto assets. But the regulatory clarity around cryptocurrency is a must thing.
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