- The United States government through the Biden administration has pushed the SEC to classify almost all crypto as unregulated securities.
- Bitcoin and Ethereum prices have edged higher in comparison to market equities despite the United States crackdown.
The United States through the Securities and Exchange Commission has increased the crackdown on crypto projects. By now, it is safe to assume that the Biden administration wants to destabilize the crypto market and fight for the adoption of the U.S. dollar to retain its global reserve currency status.
However, the emergence of BRICS led by Russia and China has reduced the reliance on the dollar as the global reserve currency. Nevertheless, the dollar still holds the majority stake with about 58 percent.
Since the implosion of FTX and Alameda Research late last year, which was described as the largest American corporate failure in modern history, the Biden administration has significantly increased the hunt down of crypto organizations within the Fed’s jurisdictions. For instance, the SEC has recently noted that all digital assets apart from Bitcoin are unregistered securities.
U.S Efforts to Cripple Crypto Market
According to recent revelations by Fox Business reporter Eleanor Terrett on Twitter, the Biden administration in conjunction with the Democratic Party is for the SEC to handle crypto regulations.
In this regard, the leaked memo indicates that the Biden administration has been pushing Gary Gensler, SEC Chair, to regulate through enforcement.
As the Democratic House financial services committee members circulated the memorandum, the message noted that Republicans are pushing to have new crypto regulations in place. But, the Memorandum stated that Congress should instead focus on the debt ceiling debate, which has increased concerns over overall inflation.
“We can’t invent new accommodating regulatory structures simply because crypto companies refuse to follow clear rules of the road,” the memo reads.
The revelations have been warmly welcomed by the crypto community ahead of the presidential elections next year. John E Deaton, founder of crypto-law.us, and Charles Gasparino, FOX senior correspondent, recognized Terrett’s effort to bring the memorandum to light.
Counter Attack?
Gensler recently requested a whopping $2.4 billion for the financial year 2024 to help in regulatory efforts. As a result, crypto companies have stepped up their push to have clear regulations similar to the ones in Europe through MiCA. For instance, Ripple Labs through CEO Brad Garlinghouse noted that the company has spent about $200 million in fighting against the SEC over XRP sales.
Coinbase Global, the leading publicly traded exchange in the United States, has also increased its effort to fight for clear crypto regulations. However, most crypto firms in the United States have recently increased their focus on international markets including Europe, the UK, Asia, India, Africa, and Australia.
Market Outlook
The crypto market led by Bitcoin has mostly been in green YTD, partially fueled by the United States banking crisis. Nevertheless, the overall crypto liquidity has significantly declined, especially after the collapse of crypto-friendly banks in the United States.
Meanwhile, volatility in the crypto market is expected to remain high as speculation increases over the regulatory sphere in the United States.
