Are new regulations coming for bitcoin?
Analyst Charles Gasparino wrote in the New York Post on Saturday warned that the $2 trillion cryptocurrency market could face some “serious regulations that will quash exuberance over crypto.
“Ask Wall Street’s C-suite types about cryptocurrencies, and they all admit they’re getting into them one way or another. But keep asking questions, and they’ll tell you something else, too: The market is ripe for a crash,” he wrote.
“Of course, many true believers in the digital space will scoff at anything traditional Wall Street says. The movement was created in the aftermath of the 2008 financial crisis as an alternative to the then-faltering Wall Street banking system.”
He went as far as suggesting that Treasury Secretary Janet Yellen, who has railed against bitcoin, has proposed an 80 percent tax rate for crypto.
“Others say Yellen and Gensler may seek rule-making that creates barriers to entry, which could slow or prevent more mainstream usage of digital currency,” he added.
But it is unclear what other official enforcement or regulatory policies Yellen and the Securities and Exchange Commission (SEC) would adopt.
Either way, it turns out that Washington could be the cause of bitcoin’s demise. This should not be surprising since the Federal Reserve wants to soon introduce a digital dollar.
At the time of this writing, bitcoin has rallied more than eight percent to around $54,000.
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