US to crack down on cryptocurrencies

Stefan Mileschin · 24th May 2021, 09:51

Risk to financial stability

US Federal Reserve chief Jerome Powell warned that cryptocurrencies pose risks to financial stability and that greater regulation is in the works.

Meanwhile, the Treasury Department is worried that wealthy individuals could use the largely unregulated sector to avoid tax and said it wanted big crypto-asset transfers reported to authorities.

The two announcements put the fear of Jehovah into the cryptocurrency market, which is currently being run like a get rich quick Ponzi scheme. Bitcoin, the most popular cryptocurrency, fell 30 percent on Wednesday after China announced new curbs on the sector. If the US follows suit then it could be terrible news for the industry.

It is not the technology that is the problem. Powell said that the Fed is looking into adopting a digital currency of its own, more the way that is being run.

While highlighting the potential benefits of advances in financial technology, Powell said cryptocurrencies, stablecoins and other innovations “may also carry potential risks to those users and to the broader financial system”.

https://fudzilla.com/news/52906-us-y...yptocurrencies

24th May 2021, 09:51	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,964	US to crack down on cryptocurrencies Risk to financial stability US Federal Reserve chief Jerome Powell warned that cryptocurrencies pose risks to financial stability and that greater regulation is in the works. Meanwhile, the Treasury Department is worried that wealthy individuals could use the largely unregulated sector to avoid tax and said it wanted big crypto-asset transfers reported to authorities. The two announcements put the fear of Jehovah into the cryptocurrency market, which is currently being run like a get rich quick Ponzi scheme. Bitcoin, the most popular cryptocurrency, fell 30 percent on Wednesday after China announced new curbs on the sector. If the US follows suit then it could be terrible news for the industry. It is not the technology that is the problem. Powell said that the Fed is looking into adopting a digital currency of its own, more the way that is being run. While highlighting the potential benefits of advances in financial technology, Powell said cryptocurrencies, stablecoins and other innovations “may also carry potential risks to those users and to the broader financial system”. https://fudzilla.com/news/52906-us-y...yptocurrencies

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Governments expected to crackdown on cryptocurrencies	Stefan Mileschin	WebNews	0	15th April 2021 09:32
India will propose a law banning private cryptocurrencies like Bitcoin	Stefan Mileschin	WebNews	0	1st February 2021 07:29
PayPal allows buying, holding and selling cryptocurrencies	Stefan Mileschin	WebNews	0	26th October 2020 07:16
Stallman gives cryptocurrencies the thumbs down	Stefan Mileschin	WebNews	0	11th August 2020 05:14
Nvidia thinks that cryptocurrencies not worth making changes	Stefan Mileschin	WebNews	0	15th February 2018 05:30
Facebook bans ads promoting cryptocurrencies	Stefan Mileschin	WebNews	0	4th February 2018 07:13
Robinhood will let users trade cryptocurrencies for free	Stefan Mileschin	WebNews	0	31st January 2018 05:18
MIT is trying to crack wireless VR, too	Stefan Mileschin	WebNews	0	15th November 2016 06:06
The Economics of CryptoCurrencies - Worth it or Not?	Stefan Mileschin	WebNews	0	11th December 2013 10:20
Wi-fi routers easy to crack	Stefan Mileschin	WebNews	0	19th April 2013 06:44