An American lawmaker has stated that cryptocurrency has "too much money and power" behind it to be banned. "There's too much money and influence behind it," said Representative Brad Sherman of the United States, explaining why Congress has not banned BTC.

Specifically, he elaborated: "Money for lobbying and campaign contributions works, or else people wouldn't do it, and that is why we haven't prohibited crypto."

## Regulation and the Reasons Why Congress Won't Ban Crypto

In an interview [published on Sunday by the Los Angeles Times](https://news.bitcoin.com/us-lawmaker-says-too-much-money-and-power-behind-crypto-to-ban-it/), Congressman Brad Sherman, a Democrat from California, discussed his thoughts on BTC and its regulation. The member of Congress from California who is in charge of a House subcommittee on investor protection has expressed a desire to criminalize cryptocurrencies like bitcoin and Ethereum. Still, he does not expect Congress will act on his proposal.

He told the news source, "I don't think we're going to ban crypto any time soon," and he was correct. "Money for lobbying and campaign contributions works, or people wouldn't do it," Sherman remarked, expanding on his previous statement as he continued: "and that's why we haven't prohibited crypto." We didn't stop it in the beginning because we didn't understand how significant it would become, and we aren't putting a stop to it now because there's too much money and power invested in it.

The congressman is concerned not just about the possibility of individual investors being cheated but also about the possibility of bitcoin being a risk to the national security of the United States. He believes that BTC poses a systemic risk, provides opportunities for criminals, and undermines the US currency's dominance. The congressman expresses a heightened concern regarding cryptocurrency mixing businesses like Tornado Cash.

The Office of Foreign Asset Control (OFAC) of the United States Treasury Department issued a ban on the Ethereum mixing program in August. The reason for the prohibition was the OFAC's accusation that the application assisted North Korean hackers, such as the hacking syndicate known as the Lazarus Group.

He believes BTC is a fad that people invest in with the expectation of making a profit by trading it for another asset before its value plummets. That's one of the perks of participating in a Ponzi scheme. After that, Sherman continued his discussion on the regulation without a prohibition.

Comparing BTC to a stock or other type of investment, he believes that the Securities and Exchange Commission (SEC) ought to supervise the BTC industry. He bases this opinion on the SEC's size, competence, and aggressive enforcement measures.

However, to make the Commodity Futures Trading Commission (CFTC) the primary regulator of the cryptocurrency business in the United States, [three different measures have been presented in Congress in 2018](/news/article/congress-crypto-protection).
 



US Legislator says why there's no Congress crypto ban

According to a series of letters sent on Tuesday morning, the 30th of August 2022, House Committee on Oversight and Reform requested information and documents from four agencies and five digital asset exchanges. [Coinbase](https://www.cnbc.com/quotes/COIN), FTX, Binance.US, Kraken, and KuCoin were among the parties contacted about what they are doing to protect consumers from scams and combat cryptocurrency-related fraud.
 
The letters request that government authorities and cryptocurrency exchanges respond by the 12th of September with details regarding their efforts to protect customers. According to the committee, the respondents' feedback will be utilised to develop legislative solutions.
 
The letters specifically request that the exchanges produce documents dating back to the 1st of January 2009. To demonstrate efforts to combat crypto scams and fraud, as well as efforts to identify, investigate, and remove or flag potentially fraudulent digital assets or accounts, as well as discussions about "whether to adopt more stringent policies.
 
In one letter to Sam Bankman-Fried, CEO and creator of FTX, the committee states that although some exchanges evaluate cryptocurrencies before listing them, others allow digital assets to sign up with little or no verification.
 
According to FTC analysis, more than $1 billion in cryptocurrency has been lost to fraud since 2021.
 
## Congress looks at crypto schemes developed by companies

Chainalysis, a blockchain analytics firm, discovered that [37% of crypto scam money](https://www.cnbc.com/2022/08/30/coinbase-ftx-binance-get-inquiries-from-congress-on-crypto-scams.html?__source=google%7Ceditorspicks%7C&par=google#:~:text=Blockchain%20analytics%20firm%20Chainalysis%20found,then%20vanishing%20with%20the%20funds.) last year went to "rug pulls". A rug pull is when someone lists a token on an exchange and invests in it to increase the price and market demand before selling the position at a premium and disappearing with the proceeds.

Binance US, which received an [investigation](https://www.reuters.com/legal/litigation/new-binance-class-action-likely-clears-one-hurdle-faces-plenty-others-2022-06-14/) from the committee on Tuesday, has been charged in a class action complaint with deceiving customers about the safety of investing in [terraUSD](/news/article/terra-usd) (UST) and its sister token, Luna.

The terms and conditions of the investor-crypto exchange agreement also differ, which needs to be standardised.
Agencies will continue infighting and cannot successfully implement consumer and investor safeguards relating to cryptocurrencies and the exchanges on which they are traded unless clear definitions and advice are provided. 






Congress investigates crypto firms scam protection

US study suggest that blockchain learning should become mandatory in schools so that students can "learn about the future of the world's economy."

Parents and college graduates were screened to ensure they had an ample level of knowledge of blockchain technology, cryptocurrency, NFTs, and the Metaverse before they were allowed to participate in the survey. Anyone who didn't understand the topics was disqualified from participation. 884 American parents and 210 US college graduates participated in the survey.

According to a [new survey](https://study.com/resources/crypto-education.html) from the online educational platform Study.com, 64% of parents and 67% of college graduates surveyed believe that cryptocurrencies should be included in mandatory education.

Both sample groups had slightly different opinions on blockchain learning. Between 25%-40% of respondents agreed that courses on  blockchain, the Metaverse, and nonfungible tokens (NFTs) should be included in the curriculum.
 
![blockchain learning.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/blockchain_learning_fab5cdbd4e.png)

Source: ([Study.com, 2022](https://study.com/resources/crypto-education.html))

## Survey Result

The survey result coincides with rising interest in and use of cryptocurrencies in the US. According to the survey, parents and college graduates who have invested in cryptocurrencies are likely to make financial contributions to their children's education. 

Over three-quarters of parents who hold cryptocurrencies make an average contribution of $766 in their children's blockchain learnings, while over three-quarters of graduates who have invested in cryptocurrencies spend an average of $1,086 on education.

The survey also revealed that both groups thought that understanding "the future of the world's economy" and ways to "diversify investments, create opportunities, and grow an investing mind" is most crucial.

## Universities are adding blockchain learning to their curriculum

Several American universities have started offering introductory courses on [blockchain](/articles/learn-moni/what-is-blockchain) technology and cryptocurrency applications, including Arizona State University and the University of Connecticut. According to Marianne Lewis, a professor at Connecticut University, the 14-week elective course at the university is intended to teach students "how to manage cryptocurrencies and how such digital assets impact our economy."

Prestigious universities like Harvard University and the Massachusetts Institute of Technology (MIT) have started to offer similar courses.



US parents want blockchain learning in school

As Q2 2022 concluded, many companies shared their data for cryptocurrency losses.

Major United States crypto companies like Coinbase and Galaxy Digital have reviewed their activities. The data they shared further substantiates that we are experiencing a [crypto winter.](/news/article/crypto-market-crashing)

As per Coinbase, the dip for the previous quarter reached more than $1.1bn. Galaxy Digital's crypto depletion for the same period was $554 million.

## 'Fast and Furious' Cryptocurrency Losses for Coinbase

One of the largest crypto exchanges, Coinbase was listed by the NASDAQ in 2021. It has shared the data for its crypto losses of more than $1.1 billion in the second quarter of 2022. Since its stock exchange listing, this has been the worst quarter for the firm.

The company announced the deficit via a [shareholder letter](https://s27.q4cdn.com/397450999/files/doc_financials/2022/q2/Q2-2022-Shareholder-Letter.pdf) on August 9, 2022. The letter mentioned that consumer behaviour amid this ‘fast and furious’ crypto winter is the same as previous ones. 

Moreover, it revealed that the company is focusing more on innovation in this downward market as it will help the company in the next cycle. 

Coinbase shared that its revenue was $802.6 million for Q2. The firm experienced a 45.1% dip in comparison to Q1. Also, if you compare this revenue to Q2 2021, there is a decline of around 153.1%.

The firm is looking to join forces with [Blackrock](/news/article/blackrock-crypto). Both firms agreed to the partnership to support Bitcoin trading. The alliance announcement has been embraced positively in the stock exchange as it saw a surge of more than 15%. Analysts believe that, with Coinbase encountering losses and probes from SEC, a partnership with Blackrock might help the firm financially.

## Galaxy Digital Q2 Crypto Losses Reached $554.7m

Another digital assets giant, Galaxy Digital, shared its report for the second quarter of 2022.

As per the data, the deficit piled up to $554.7 million in Q2. In Q2 of last year, the company's total debt was only around $182.9 million.

The cryptocurrency losses for the major firms suggest a further aggravating crypto winter.


Cryptocurrency Losses for Major US 

Tornado Cash, the Ethereum-based non-custodial open source software project, has been sanctioned by the United States’ Treasury department.

The sanctions announced on Monday stop people in the US, and anyone subject to US jurisdiction, from using the cryptocurrency mixer.

All property, as well as interests in property, of Tornado Cash in the US or held by US persons are blocked and must be reported to the Office of Foreign Assets Control (OFAC).

The crypto tool enables users to mix their coins using its smart contract, obscuring the prior trail of coins exchanged over a transparent ledger. 

[The sanction](https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808) relates to the smart contract protocol. These actions have created a bad precedent for open-source software development. 

Following the US Treasury's announcement, it was discovered that Circle, the centralised issuer of stablecoin USDC, has also blocked [every sanctioned address](/news/article/crypto-russia) from using USDC. 

As tracked by internet readers, the number of [black-listed](https://dune.com/phabc/usdc-banned-addresses) USDC addresses now stands at 81.

These activities have prompted many to doubt the security of storing digital assets in a centralised location, even for non-criminals who want to employ privacy-enhancing techniques.

## Tornado Cash Co-creator's Github Account Suspended

Roman Semenov, the co-creator of Tornado Cash, had his GitHub (open source development repository) account disabled. He responded by questioning whether it is now illegal to create open-source code.

Considering the nature of the restrictions imposed this could disturb freedom-loving crypto fanatics. 
These activities also offer various tools in the so-called DeFi space which rely on centralised stablecoins and may have centralised development choke points.

As painful as it may seem, Bitcoin's spontaneous and decentralised nature is a reason why such open-source software exists today.

Open-source software will continue to function as intended, but with increased pressure on software/wallet/protocol developers, only the strongest and most truly decentralised networks will remain.

When considering the long-term case for Bitcoin, one of its most compelling value propositions is that it is an asset with no counterparty risk or dilution (devaluation) risk.
 



Tornado Cash Sanctioned by US Treasury

The [senate bill proposed on Wednesday](https://www.protocol.com/bulletins/senate-bill-cftc-crypto) by Michigan Democrat Sen. Debbie Stabenow and Arkansas Republican Sen. John Boozman is the latest attempt in Washington to establish more defined government laws for digital assets. Under this law, the Commodity Futures Trading Commission would be given power over the markets for Bitcoin and Ether, the two major cryptocurrencies.

The CFTC and the SEC have been wrangling for control of cryptocurrencies. Tensions recently heightened when the SEC classified a list of crypto tokens as securities in an insider trading lawsuit, triggering public criticism from Caroline Pham, a CFTC commissioner.

## Senate bill could give clarification

The senate bill proposed could give some clarification. It would give the CFTC direct authority over tokens classified as "digital commodities." According to the bill summary, this covers bitcoin and ether.

Online exchanges and other businesses that assist in token trading would have to register with the CFTC. The bill would also mandate the CFTC to verify crypto businesses, avoid abusive trading practices, have adequate financial resources and appropriate cybersecurity safeguards.

The bill also acknowledges the role of other financial bodies in regulating digital assets that are not commodities but act more like securities or means of payment.

The emphasis on Ether and Bitcoin as commodities is consistent with the views of SEC Chair Gary Gensler, who has stated that most other tokens are likely to be securities.

However, the bill only briefly mentions the classification and uses the examples of Bitcoin (BTC) and Ether (ETH), which the SEC previously classified as commodities. In addition, the law states that any crypto assets that are not deemed as securities by the SEC may bear the CFTC's commodities stamp.

Rostin Behnman, the head of the CFTC, has been vying for a new authority to oversee digital commodities spot markets, where the assets are traded directly. The new legislation would give that power. The bill states that the CFTC would have "exclusive authority over any account, agreement, contract, or transaction involving a digital commodities trade."

A broader [crypto regulation](/news/article/us-sec-regulation) bill submitted in June by Senators Kirsten Gillibrand and Cynthia Lummis considers the CFTC to play a leading role in crypto regulation. Gillibrand and Lummis recently admitted that the complete legislative package was unlikely to pass this year but that some provisions, such as those defining the function of the CFTC, may go through Senate committees.



Senate bill to strengthen CFTC's crypto authority

Gucci, an Italian luxury brand, announced on Monday that it would [accept apecoin as a payment method](https://cointelegraph.com/news/gucci-becomes-first-major-brand-to-accept-apecoin-payments). The payment mode is currently only accessible in the United States because not many countries allow crypto to be accepted as a payment method. The brand is partnering  with Bitpay to make the payment option available. Bitpay is a cryptocurrency payment processing firm that has worked with numerous well-known companies to make cryptocurrency payments possible.

It is, however, Gucci's 12th cryptocurrency that they accept as payment. In May, the company announced plans to accept 12 crypto assets as payment options in 111 stores across North America. Bitcoin, Ethereum, Dogecoin, SHIB, Litcoin, Wrapped BTC, USDT, USDC, and many more were on the list.

Gucci has emerged as one of the few large companies to engage with cryptocurrency aggressively. In February, the Italian brand launched the "SUPERGUCCI" NFT collection in collaboration with the vinyl toy brand SUPERPLASTIC. The following month, it released the "Gucci Grail" NFT collection, targeted at owners of top NFT projects like the [BAYC](/news/article/bored-ape-nft). The brand is profiting from the current excitement in the cryptocurrency and NFT markets.

## Apecoin community reactions

ApeCoin's official Twitter page responded by stating that they are thrilled that Gucci will be the first large company to accept the cryptocoin for in-store transactions. Everyone is excited about this move because it is a community-driven initiative. As a result, it's not surprising that Twitter is flooded with tweets concerning Gucci's moves. Users have been seeing that more corporations are adopting the Web3 environment, and it appears that Gucci is ready as well.

Apecoin (APE) has experienced a rise in its general acceptance as a payment method. As the market has gained traction and the cryptocoin has witnessed some favourable developments, it has increased by about 50% in the previous month. It is currently trading at $7.32. However, the coin is still nearly 75% down from its ATH.



Gucci now accepts ApeCoin as payment

US and UK crypto regulation authorities collaborate to foster and regulate the cryptocurrency and NFT market. The joint forces of these countries will be working on different initiatives to regulate crypto. This recent development will focus on promoting stablecoins and bringing financial innovation. 

Recently, the US Department of the Treasury released a joint statement regarding the UK and US collaborative financial regulatory working group. The virtual meeting was held on 21 July. 

The HM Treasury and the [US Department of the Treasury](https://home.treasury.gov/news/press-releases/jy0888) members took part in the meeting. Besides, the Bank of England (BOE), the Board of Governors of the Federal Reserve System, the Financial Conduct Authority (FCA), the Commodity Futures Trading Commission (CFTC), the Office of Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), and the Federal Deposit Insurance Corporation (FDIC) were also part of the meeting. 

## US and UK crypto regulation focus points

In general, the crypto regulators from the UK and US discussed seven themes. These include a cooperative international and bilateral approach, financial innovation, secure financing, and non-bank financial intermediation (NBFI). Moreover, benchmark transition, operational resilience, and developments in the Russia-Ukraine war. 

The Working group meeting established that it will focus on promoting financial stability to reduce the risk and uncertainty from the market. Regarding the issue of Non-Bank Financial Intermediation, the meeting decided that liquidity risk management must be prioritised. 
Besides that, the Working Group also discussed the situation of stablecoins in detail. The developments in central bank digital currencies (CBDCs) were also a key discussion point. For this, all participants showed commitment to promoting safe monetary innovations and regulatory measures for stablecoins that can be followed throughout the jurisdiction. 

The officials from both countries acknowledged the importance of the US and UK crypto regulation partnership. Also, the members from both sides pledged that they would work together to introduce long-term crypto-asset regulations for a robust and safe market. Earlier, UK lawmakers confirmed to broaden [property rules](/news/article/uk-assess-crypto-law) to the crypto space and NFT. Such developments will help the government in becoming a crypto hub in the future. 

US and UK crypto regulation officials join forces

Kraken exchange, one of the world's largest cryptocurrency exchanges, is under federal investigation for allegedly breaching United States sanctions by enabling customers in Iran and beyond to purchase and sell digital tokens.

Kraken, an $11 billion private entity that allows customers to purchase, trade, or hold multiple cryptocurrencies, has previously faced [regulatory action](/news/article/us-sec-regulation). The Commodity Futures Trading Commission fined the corporation $1.25 million last year for unlawful trading services. 

The cryptocurrency firm would be the largest US crypto business to face OFAC enforcement action. Sanctions on Iran, enacted by the US in 1979, ban the export of goods or services to people or companies in the country.

As the market for digital currencies has risen, the federal government has progressively clamped down on crypto firms. Tether, a stablecoin corporation, was penalised by the CFTC last year for false representations regarding its reserves. Simultaneously, the Justice Department charged an ex-employee of Coinbase, the largest cryptocurrency exchange in the US, with [insider trading](https://www.bloomberg.com/news/articles/2022-07-21/ex-coinbase-manager-arrested-in-us-crypto-insider-trading-case) earlier this month.

## Lawsuit Accused Business in 2019

The Kraken exchange and the subject of sanctions came up in a November 2019 lawsuit filed by a former finance department employee who accused the business of earning money from accounts in sanctioned nations.

Jesse Powell, Kraken's exchange CEO, allegedly stated that he would contemplate breaching the law in various instances if the benefits to the firm exceeded the possible fines. 

However, it is believed Powell stated that the Kraken exchange regularly checks compliance with sanctions laws and, as a general rule, communicates to regulators even possible problems.  

That same year, OFAC began looking into the Kraken exchange, concentrating on the company's accounts in Iran. Sources alleged Kraken users had also created accounts in Syria and Cuba.

A lawyer from a renowned law firm that handles crypto regulations believes that as crypto moves without a bank or intermediaries, exchanges are liable for certain forms of financial regulatory compliance.




Kraken Exchange Under Investigation

If you ask Nikhil Rathi, the new chief executive, FCA crypto regulation may become a new item on its agenda. According to him, the UK’s Financial Conduct Authority (FCA), has some severe intentions to strengthen cross-border crypto-asset [regulation](/news/article/crypto-regulations). 

David Hamilton of Pinsent Masons commented on [Rathi’s recent speech](https://www.fca.org.uk/news/speeches/how-uk-will-regulate-future) on how the US and the UK had “agreed to deepen ties”, regarding financial development. He also added that both countries were “exchanging views on crypto-asset regulation and market developments”. 

“Intensive dialogue between our nations is essential to ensure we deliver consistent outcomes,” said Rathi. He added that since the UK had left the European Union, it got the rare opportunity to connect its regulation to today’s market challenges.

Rathi also confirmed FCA primarily invested in data and technology, and kept scanning 100,000 websites for fraud on a daily level.

“The US and UK will deepen ties on crypto-asset regulation and market developments – including relation to stablecoins and the exploration of central bank digital currencies,” Rathi concluded.

## FCA crypto regulation to be more innovative 

Recently, the UK, US and Singapore launched the International Organization of Securities Commissions (IOSCO) governance body on DeFi and crypto market integrity risks. 

Hamilton commented that Rathi’s speech was vital, especially if viewed in the context of the G20 Financial Stability Board’s (FSB) [announcement](https://www.fsb.org/2022/07/fsb-statement-on-international-regulation-and-supervision-of-crypto-asset-activities/) earlier this month on establishing a new regulatory framework for crypto supervision.

Hamilton also added that Rathi’s speech showed just how important it is for companies to have adequate policies and procedures to comply with the Money Laundering Regulations.
Rachael Preston of Pinsent Masons asserted the speech shows FCA’s intention to become an essential player of the regulatory game. 

“Expect to see a more collaborative, innovative and adaptive style of supervision in the future, with the FCA continuing to push the boundaries of the role of a financial regulator in modern society,” Preston said.

She also added that technology solutions will play a substantial leading role in the FCA’s transformation plans, and will be a key factor regarding its effectiveness. 
 
“The question is whether such an approach can deliver the right outcomes to what is an ever more complex, nuanced and user experience-led market,” Preston said.



FCA crypto regulation – new item in the UK-US financial co-lab

The first case of Coinbase insider trading has resulted in charges. US prosecutors in Manhattan have charged a former product manager with wire fraud, according to the New York Times.

Product manager Ishan Wahi and his brother, Nikhil Wahi, were taken into custody in Seattle on Thursday. Another defendant, Sameer Ramani, remains at large, and the Securities and Exchange Commission (SEC) has filed civil accusations against him as well.

## Coinbase insider trading is the subject of an investigation by the SEC

Lawyers representing Ishan Wahi, 32, released a statement saying that he is "innocent of all crime and intends to defend himself forcefully."

Requests for feedback from Nikhil Wahi's lawyer were not immediately returned. A lawyer for Ramani was not immediately available to Reuters.

Prosecutors allege that[ Ishan Wahi divulged sensitive information](https://www.foxbusiness.com/markets/ex-coinbase-manager-charged-crypto-insider-trading-case) on upcoming Coinbase announcements about additional cryptocurrency assets that users would soon be able to trade on the exchange. He booked a flight to India after being summoned to Coinbase's Seattle headquarters by the company's security director, according to the report.

For the first time in insider trading of digital assets, an ex-NFT marketplace employee has been charged. Law enforcement prevented him from boarding that flight on May 16. The bond for Ishan Wahi was set at $1 million and his passports had to be surrendered.

Despite his alleged attempt to run, prosecutors did not urge that he be arrested. On August 2, he will appear in federal court in Manhattan.

A total of 25 crypto assets were allegedly bought and sold for a profit by Nikhil Wahi (26) and Ramani (33), it states in the related civil accusations, nine of which the SEC said it had classified as securities.

## Cryptoqueen added to FBI's list of top 10 most wanted

The SEC's investigation into Coinbase's listing of the coins deemed securities in the complaint is ongoing, according to an SEC official.
At least 14 times before Coinbase's statements in June 2021 and April 2022, Ethereum blockchain wallets were used to acquire the assets, according to prosecutors.

At least $1.5 million in ill-gotten gains were generated as a result of these transactions.

An internal investigation into the trading was shared with authorities, according to Coinbase's chief security officer Philip Martin. 

For breaking crypto news on Coinbase and more, go to [Latest Moni](/news).


Insider Trading Charges Filed Against Ex-Coinbase Manager

US SEC chairman outlines what to expect from the authority regarding crypto regulation. SEC’s duties being the primary watchdog for securities, finance, and investments will expand. 

## Global cryptocurrency regulations

The need for crypto laws arose after a down market and the [collapse of Terra UST](/news/article/terra-luna-collapse), which caused investors to lose a massive amount of their investments. As a result, China openly prohibited the use of cryptocurrencies, while Russia prohibited its use as a payment alternative.

The US remained hesitant to finalise the proposed crypto regulations until Biden requested the crypto regulation draft from the US SEC authority. The regulation draft is submitted for review and is anticipated to be deployed shortly.

As the deadline for implementing crypto laws approaches, the SEC has geared itself for the duties that will fall on its shoulders soon. US SEC chairman spoke to Yahoo Finance about the details of their forthcoming duties once the laws are implemented.

## US SEC and cryptocurrency regulation

Gensler stated that the new cryptocurrency regulation would assist investors and customers by protecting them from any difficulties caused by service providers. Their primary focus areas, according to Gensler, will be exchanges, brokerage, and loans. He stated that they are contacting stakeholders to notify them of their needs.

While stating that they are open to conversations and discussions, he also invited exchangers, lenders, and other dealers to come and speak with them. 

He noted that Congress had given the SEC authority to change some laws to better safeguard investors, stating:

“We do have robust authorities from Congress also to use our exemptive authorities that we can tailor investor protection.”

They even have the authority, he claims, to request tokens for disclosures. He stated that the public has the right to comprehensive and honest disclosures, which would serve as their primary safeguard.

Because the SEC is obliged to cover tokens, stablecoins, and volatile coins, they will also have the power to consult with banking authorities and the CFTC. He has emphasised that Bitcoin is not a security coin and that the CFTC would decide the remainder of the coins and tokens status. He has also cautioned that many crypto coins will fail, so investors should exercise caution.







US SEC Chairman outlines crypto regulation

Alto, an investing firm in the United States found out that 39% of Millennials in America hold digital assets. Individual stocks are owned by nearly the same percentage, as estimated in the American crypto survey.  

While some had a small portion of their wealth in mutual funds, the majority had some of their hard-earned money in crypto. Seventy percent of investors with a long-term outlook included cryptocurrencies in their Individual Retirement Accounts (IRAs). 

Additionally, the American crypto survey found that citizens within the aforementioned age group who do not own any forms of digital currencies are considering entering the space in the not-too-distant future despite reservations by [Warren Buffet and Bill Gates](https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334) on the use of Bitcoin.

With that said, the current crypto climate where all cryptocurrencies are trading below 50% of all-time highs  has made it difficult for millennials to throw money behind any digital asset. Commenting on the insights from the study, founder and the Chief Executive Officer (CEO) of Alto, Eric Saltz said that in a modern world of conspicuous consumption, soaring living costs, and student loan debt reaching new highs, millennials are struggling to afford the present which makes it difficult to them to invest for the future.

Out of the assets available for investments, millennials are more interested in putting their monies into real estate. Statistically, 77% answered they would invest in properties, 55% are interested in testing Angel investing, and 67% were interested in jumping into innovation funds. 

Another study conducted by deVere Group, an international financial consultancy firm revealed that 51% of Generation Z (born between 1997 and 2012) and 36% of millennials would prefer receiving half of their salaries in cryptocurrencies instead of fiat money (USD). 

According to the Chief Executive Officer (CEO) of deVere Group, Nigel Green, many youngsters grew up within the technological revolution, and are accustomed to digital things. This has made it easy for them to embrace the latest innovation in the financial sector since they see massive potential in the use of cryptocurrencies. 

Moreover, per a survey by the Consumer News and Business Channel (CNBC) in June, 47% of millennial millionaires have at least 25% of their wealth in the decentralized finance market. 

For the latest crypto business news, visit [Moni Talks](https://monitalks.io/news/category/crypto-business-news).


American millennials invest more in crypto than mutual funds

The CEO of the cryptocurrency exchange FTX, Sam Bankman-Fried, recently warned that some exchanges have been “secretly insolvent” and they might collapse.

Commenting on the infamous flop of Luna, a $40 billion digital asset associated with TerraUSD, a $16 billion stablecoin designed to keep balance with the U.S. dollar, Sam Bankman-Fried asserted that [more failures will happen](https://www.forbes.com/sites/stevenehrlich/2022/06/28/bankman-fried-some-crypto-exchanges-already-secretly-insolvent/?sh=2fdf533547f7). “There are some third-tier exchanges that are already secretly insolvent,” he said.

> “There are companies that are basically too far gone and it’s not practical to backstop them for reasons like a substantial hole in the balance sheet, regulatory issues, or that there is not much of a business left to be saved,” said SBF.

Last month, Singapore-based Three Arrows Capital (3AC), a highly levered digital trading firm which bought $200 million of locked Luna classic (LUNC) confirmed that it’s now worth $700.

Three Arrows’ had borrowed large sums from different crypto-related companies such as Voyager Digital and BlockFi. Bankman-Fried decided that, between FTX and his trading company Alameda, he provides the faltered companies with $750 million in credit lines. 

However, he added that he’s aware there is no guarantee this investment will show profitable.

> “You know, we're willing to do a somewhat bad deal here, if that's what it takes to sort of stabilize things and protect customers,” he said

Still, this cash injections are far from only being altruistic. Known as a “vulture capitalist”, SBF recently [bought a 7.6% stake](https://www.monitalks.io/news/article/ftx-uk) in cryptocurrency brokerage Robinhood and the people familiar with the situation say he’s into a total acquisition.

Along with this theory comes the latest rumors of Sam Bankman-Fries actually closing in on a deal to buy embattled crypto lender BlockFi for $25 million in a fire sale.

## JPMorgan Says Crypto Deleveraging Cycle Won’t Last 

Also, last year, he decided to slash leverage on FTX saying crypto derivatives are a "somewhat misunderstood area." 

"Any position that you're putting on with that level of leverage can't be absolutely crucial for efficient markets, and this is not something I felt was particularly important or good for crypto market health," SBF commented after lowering the cap to 20 times.

This move proved to be good, at least according to the JPMorgan crypto views. The company’s strategist Nikolaos Panigirtzoglou [recently explained](https://fortune.com/2022/06/30/crypto-market-deleveraging-jpmorgan-report/) “historic deleveraging of the cryptocurrency market could be coming to an end, which could signal the close of the worst of the bear market”.

Panigirtzoglou added that “the fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion.” 





Sam Bankman-Fried says more crypto platforms will close

Despite the company's significant efforts to obtain clearance, the SEC denied Grayscale Investments' approval to transform its $13.5 billion [Grayscale Bitcoin Trust (GBTC)](https://cointelegraph.com/news/breaking-grayscale-launches-legal-challenge-to-bitcoin-spot-etf-rejection) into a spot-based bitcoin ETF on Wednesday.

The decision follows the SEC's rejection of Bitwise's application for a spot bitcoin ETF on Wednesday.

After a protracted struggle to convince the SEC that the product had enough investor security, the refusal is a blow not only to Grayscale but to the whole cryptocurrency industry.

## The significance of a BTC spot ETF in the U.S. markets

The significance of a Bitcoin based spot ETF being available on the listed U.S. markets cannot be overstated. It would mean that institutional and everyday investors could buy and sell Bitcoin like any other security on the market.

This would give institutional investors more confidence in the market and could help to fuel the next bull run. It would also make it much easier for average people to invest in Bitcoin, which could help further mainstream adoption.

## Why was Grayscale's BTC trust spot ETF approval denied?

Grayscale's BTC Trust Spot ETF application was recently rejected by the SEC. The reason behind the rejection is:

1) The SEC is concerned about Bitcoin's volatility and its potential to cause market instability.
2) The SEC is concerned investors would lack sufficient protections under the Grayscale proposal.

## Grayscale's legal action
 
In October 2021, Grayscale filed to have its Bitcoin Trust known as GBTC, become an ETF, but the decision was repeatedly postponed. Grayscale has increased pressure on the authority to support it, including by providing a means for individuals to email their support immediately.

In a petition, Grayscale promptly challenged the SEC's judgment to the U.S. Court of Appeals for the District of Columbia Circuit. Donald B. Verrilli Jr., a former solicitor general of the United States, is Grayscale's senior legal strategist and is leading a group of lawyers from Davis Polk & Wardwell in this case.

According to Verrilli, the SEC is "failing to apply consistent treatment to similar investment vehicles, and acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934."

SEC Chair Gary Gensler has repeatedly stated that he wants to see greater control of cryptocurrency exchanges before authorising a BTC spot ETF.

The focus of investors and cryptocurrency experts will now shift to what Grayscale can and will do to secure permission for conversion. On June 27, CEO Michael Sonnenshein stated that the business will be "preparing for all possible post-ruling scenarios." On the same day, Grayscale also said that if its application were to be approved, it would work with market makers Virtu Financial and Jane Street to assist in turning GBTC into an ETF.

Stay tuned with [Moni Talks](https://monitalks.io/news) for the latest crypto news.


Grayscale sues SEC for denying BTC ETF approval

On Wednesday, the U.S. federal reserve raised its interest rates by 75 basis points. It's the highest rate increase in 28 years, and it's part of a larger attempt to combat rising inflation, which has roiled the economy and markets, from stocks and bonds to cryptocurrencies.

According to a [statement (https://www.federalreserve.gov/monetarypolicy/files/monetary20220615a1.pdf) released by the Federal Open Market Committee (FOMC), which determines the Fed's monetary policy, the central bank will continue to shrink its balance sheet at the rate stated in May.

According to the Fed, the Fed Funds rate, which is the rate at which commercial banks can borrow and lend their excess reserves to one another overnight, would climb to a range of 1.5 percent -1.75 percent. According to Goldman Sachs, bond traders are pricing in a range of 3.25 percent to 3.5 percent by the end of the year, signalling an extremely quick and severe pace of monetary tightening.

## Bitcoin Skyrockets

After the announcement from the Fed crypto immediately reacted to the news. Following the news, bitcoin skyrocketed, hitting values above $21,000. It has bounced back from an 18-month low. Following a volatile week, altcoins like Solana and Cardano saw double-digit gains.

Ripple and BNB both increased by 9.8% and 7.4%, respectively, while [Dogecoin](/coins/doge), Polkadot, and Avalanche all had a double-digit short-term rise. They each gained 13.73 percent, 11.26 percent, and 14.59 percent.

At the same time, the price of Ethereum (ETH) increased by 6% to USD 1,180. Stocks followed suit, with the broad S&P 500 index climbing 0.17 percent in the first hour after the news was released.

According to CoinMarketCap, global capitalization increased by roughly 4% to $ 950 billion.

## Final Thoughts on the Fed Crypto impact

According to crypto experts, the stock and crypto markets will remain turbulent in the near future due to concerns about inflation, the Russia-Ukraine war, and rising oil costs.




U.S. Fed crypto interest rate hike causes surge

In July 2021, the US internet sales behemoth [Amazon](https://www.amazon.com/) shook the crypto market after letting out a blockchain and cryptocurrency lead job advertisement.

The ad specified that the company wanted someone to develop the case for crypto, drive the vision and product strategy, and gain leadership buy-in and investment.

According to sources, the directive for this advertisement came from the headman - Jeff Bezos himself - and it meant more than merely looking into options. Allegedly, Bezos was (and still is) interested in implementing cryptocurrencies into Amazon's business, particularly [Bitcoin](/coins/btc), [Ethereum](/coins/eth), Cardano, and Bitcoin Cash. After that, according to reports, the company would develop its native token as well.

Still, even though there were plenty of rumors, they were never officially confirmed. Amazon did, however, hint that it plans to jump into the creation of Amazon cryptocurrency, and the year 2022 was on everybody's mouth.

## Who will be Amazon’s Crypto Head?

According to the job ad, the company searched for "an experienced product leader" to develop a roadmap for Amazon blockchain and cryptocurrency strategy.

It stated that the successful candidate would leverage expertise in blockchain, distributed ledger, central bank digital currencies, and cryptocurrency to drive the concept forward.

This step seems logical since other big fintech companies, such as Facebook, Visa, and Google, also recruited whole teams of experts charged with creating a new blockchain and crypto-related workspace.

## When Could Amazon Launch?

As we already mentioned, there were no official details on Amazon's possible launch date. However, 2022 was the year everyone mentioned when discussing the digital currency that would be standing shoulder to shoulder with Bitcoin and Ethereum.

There is already something called Amazon Coin; a virtual currency that can be bought on Amazon's website and then be used to purchase apps, games, and in-app items from the Amazon Appstore. Each Amazon Coin is worth $0.01 and can be bought in cheaper stacks on the Appstore app, Fire tablets, and the Amazon website. Still, it is not an Amazon cryptocurrency, per se, since these coins are non-refundable after purchase.

In the case of the actual company's cryptocurrency, the users should use it to shop on the Amazon website, trade with it, and, eventually, exchange it for other tokens.

Nowadays, the global finance industry deals with trillions of dollars daily, serving billions of users. However, the whole sector has problems with bureaucracy, high costs, frequent fraud, and constant delays. Third parties such as payment networks, stock exchanges, and money transfer services deal with crime daily. Therefore, the costs of regulation are rising as end-users ultimately bear the burden.

## Amazon to Sell NFTs Soon

Amazon admitted mulling similar projects in the past, even though these projects were rather understated than the one which wraps the Amazon cryptocurrency nowadays.

Amazon already has 'Amazon Managed Blockchain' service that, according to its webpage, "makes it easy to join public networks or create and manage scalable private networks using the popular open-source frameworks Hyperledger Fabric and Ethereum”.

However, the most recent reports show that Amazon is not even near adding cryptocurrencies as the payment option for its retail services but is interested in the Web3 space. Recently, company Chief Executive Officer Andy Jassy commented that even though developing an Amazon coin is not planned for the near future, there is a possibility for the company to sell non-fungible tokens (NFTs) on its e-commerce platform.


Status Quo on Amazon Cryptocurrency Development

The [BTC](/coins/btc) price is now trading at $28K, indicating that it is highly oversold, as evidenced by RSI levels around 30%.

Indeed, the RSI has hit levels not seen since the May 2021 crisis. The price may have a positive retracement and retest the broken $30K barrier in the immediate term. However, it is also feasible that it will continue to fall towards $24K and $20K, which might eventually indicate a mid-term bottom. 

The 50-day and 100-day moving averages also form a bearish crossing, which might increase the likelihood of lower prices sooner rather than later. BTC price has broken below the huge bearish flag that has been building over the previous few months, indicating a negative continuation scenario. 
 
The downtrend is presently displaying symptoms of fatigue, with the past few candles closing with large wicks to the downward. The RSI is also attempting to break above the oversold area, implying a short-term positive pullback to the previously breached $30K barrier. However, the bears have total control, and a collapse below the $24K level remains likely. 

The futures market undoubtedly had an influential role in this collapse, since Bitcoin's open interest was unusually high even as the price fell from $48K to $37K in April. This gradual decline in open interest during a 20% drop indicated that many stop losses and liquidation targets of long positions were located below the $37K, $33K, and $28K support levels.  

However, the open interest is still significantly greater than in May 2021 following the drop from the $64K ATH, indicating that the futures market is still hot, despite the current decline. Because high open interest results in significant volatility, this might be taken as a negative indication. Rising inflation, geopolitical events, and concerns about the Fed tightening monetary policy have all contributed to heightened market volatility. 

The Fed raised interest rates on Wednesday - the first time in more than 20 years - signalling that future rate hikes are likely and that the balance sheet runoff will begin in June. Some analysts believe [TerraUSD (UST)](https://coinmarketcap.com/currencies/terrausd/), one of the most popular stable currencies, also contributed to Bitcoin's fall this week. UST is supposed to be tethered to the dollar, but it plummeted to 29 cents this week and crashed in a simulated bank run as investors panicked and sold out their tokens. 

Since December 25, 2021, the BTC price has not risen beyond $50,000. Despite the problems, Bitcoin has remained above its January low of less than $34,000, which was the lowest in the preceding six months. BTC price dropped by 40% since its all-time high above $68,000 on November 10, owing to rising inflation, a sluggish job market recovery, and the Fed's continuous signs that it will begin winding down the measures to assist the economy.

Despite a poor start to the year, Bitcoin entered 2021 on a high note, thanks to a robust November and early December that gave way to the recent downward trend. After beginning 2021 around the $30,000 level, Bitcoin rose throughout the year, reaching its current all-time high of $68,000 on November 10.  

Despite decreasing dramatically from its most recent all-time high, many analysts believe BTC price will eventually surge beyond $100,000, describing it as a matter of when, not if.

Bitcoin reached its first high in 2021 when it surpassed $60,000 in April. Since then, the price fluctuation has highlighted the cryptocurrency's unpredictability when more individuals are eager to participate. Bitcoin bounced dramatically up and down in the weeks between a July low that brought it below $30,000 and its most recent peak in November. 

## Analysts’ Views of BTC Price

According to a crypto specialist, price fluctuations are expected for individuals who invest in crypto for the long term. Big drops are not a cause for concern, and he avoids reviewing his stocks during dangerous market falls.

Humphrey Yang's set it and forget it attitude to cryptocurrencies mirrors his approach to traditional stock market trading. Still, other experts believe Bitcoin is too distinct from traditional assets to draw historical similarities.  

Recent price fluctuations have been accompanied by rising inflation, persistent uncertainty over the country's protracted battle with COVID-19, and new regulatory steps by the United States government, notably Biden's recent executive order.
 
## Cryptocurrency Crime and Tax Evasion 

A few main themes have developed about new cryptocurrency regulation in the US: preventing cryptocurrency crime and tax fraud, ensuring stable coin regulation, and the possibility for investment vehicles like crypto ETFs and other funds.
The decentralised nature of digital currencies is a significant appeal for many crypto aficionados. However, regulatory guidelines can assist in protecting investors.  

One proposal would broaden the definition of a brokerage to include firms that support digital asset trading, such as cryptocurrency exchanges. This type of move would imply higher tax reporting duty to assist the IRS in tracking crypto tax evasion. 

Companies that facilitate crypto trades would be compelled to provide tax information about such exchanges to the IRS, beginning with the 2024 tax season, under a proposed new rule being examined by legislators.  

Furthermore, Gensler has spoken about the necessity for increased legislation to help avoid future ransomware attacks. 

## Stable Coin Regulation 

Stable coins are most utilised by sophisticated traders to decrease costs on crypto-to-crypto exchanges, but the Biden administration analysis suggests that stable coins may become a more general digital payment system. Because cryptocurrency is still in its infancy as an asset class, any new regulations may influence investors' portfolios.

According to Gensler, unscrupulous actors may be able to dodge public policy measures and other punishments targeted at preventing money laundering or guaranteeing tax compliance by avoiding the use of US dollars in direct crypto-to-crypto exchanges. 

## Cryptocurrency ETFs 

Cryptocurrencies ETFs are not now accessible in the US, but they may provide a future method for investors to invest in cryptocurrency without buying directly from an exchange. "There's not a method to acquire an asset that closely tracks the price of a certain cryptocurrency until an ETF is approved," explains Jeremy Schneider. That implies that the only method for investors to do so is to purchase coins directly from an exchange. If you are interested in cryptocurrency, these funds, like a traditional ETF or index fund, may help you diversify your assets among multiple coins. 

## Biden's Executive Order  

President Joe Biden has authorised federal agencies to establish a plan for laws and regulations on digital assets such as bitcoin with the signing of a new executive order on cryptocurrency. 

According to experts, the decision will assist in creating the regulatory clarity needed for significant institutional adoption of Bitcoin and other digital assets. Long-term investors may benefit from more stability in the usually turbulent crypto sector. After an early burst that saw the price of Bitcoin rise, it quickly dropped again. 

Biden's directive also directs US authorities to ensure that the country's cryptocurrency regulations are consistent with US allies. It charges the Financial Stability Oversight Council to investigate any illegal financial issues. Furthermore, the law underlines the significance of a new central bank digital currency issued by the government. Biden's executive order is a timely reminder that US politicians are closely monitoring Bitcoin and how it may impact financial markets in the future. This should not persuade crypto investors to make quick adjustments to their long-term investment strategy.

Experts advise sticking to the most established cryptocurrencies, Bitcoin and Ethereum, and investing just what you are willing to lose or no more than 5% of your overall portfolio. Budget essentials such as emergency preparedness, debt repayment, and retirement savings should take precedence over Bitcoin investments. Regarding where to purchase and sell cryptocurrencies, stick with a well-known, high-volume cryptocurrency exchange. 

## China’s Ban on Financial Institutions from Cryptocurrency Business 

China has prohibited financial institutions and payment businesses from offering cryptocurrency transaction services and has advised investors against speculative crypto trading.

According to a blockchain analysis business, a combination of factors has contributed to the recent sell-off, in which new short-term investors dumping their holdings in response to the latest decline may be adding to the reduction in Bitcoin's value. However, the stock and cryptocurrency markets have historically gained despite greater volatility and this is expected to continue. As a precaution, experts urge investors to keep investments small to handle volatility. 

To conclude, if Bitcoin survives as a digital asset class, which it may, it will be seen as a high-risk asset class. As a result, it might see a significant gain in value in the future or go the other way and become worthless. Therefore, it remains to be seen if Bitcoin is indeed the future “world money".


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