CRYPTO on NEO - The Blend May 21th, 2023
Last updated
Last updated
We are here to navigate the bustling currents of the crypto space, serving up a mix of the most significant stories that have shaped the industry over the past week. From regulatory tightropes to groundbreaking projects, we've got you covered. So, let's dive in.
The past week saw a notable uptick in discussions around cryptocurrency regulation in the United States. Bitcoin, Ethereum, and other major cryptocurrencies have been wrestling with a wave of U.S. regulatory scrutiny, a storm that some worry could "erode the value of Bitcoin to dust"1.
A leaked internal memo to the Democratic House Financial Services Committee members has hinted at a seismic shift in the crypto landscape, as it disclosed the possibility of almost all cryptocurrencies being classified as securities. The memo drives home the point, "The problem isn’t ambiguity—it’s mass non-compliance with existing laws"2, urging Democratic lawmakers to counter Republican claims of providing market clarity by carving out a niche for the Commodity Futures Trading Commission (CFTC) in crypto3.
The current administration has made significant strides towards regulating cryptocurrencies. Last year, President Joe Biden inked an executive order directing federal agencies to explore strategies to respond to the cryptocurrency boom45.
In a significant move towards ensuring legal compliance, the U.S. Department of Justice announced the establishment of a new Crypto Crimes Unit. Tasked with tracking illegal transactions facilitated by cryptocurrencies, this unit is a response to the growing use of cryptocurrencies in financing terrorism, money laundering, and transnational organized crime6.
On the international stage, a bipartisan bill from 2022 was reintroduced in Congress, calling for U.S. federal agencies to report on El Salvador's cybersecurity and financial stability capabilities. This move is part of the efforts to combat the use of cryptocurrency as legal tender. El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as a legal tender, a decision that has stirred concerns about the country's financial and economic stability, as well as its ability to effectively combat money laundering and illicit finance789.
In a nutshell, this past week's crypto news was dominated by regulatory and surveillance issues, underlining the importance of these factors for the future of the sector. Stay tuned to "CRYPTO on NEO - The Blend" as we continue to blend the essential crypto news, brewing a comprehensive weekly digest for your crypto journey.
