Memecoin’s Shiba Inu mania reveals crypto supervision, with so much going on in the fast-changing world of cryptocurrency. Two recent trends demonstrate why authorities are attempting to keep up. Even if some fear they’re already behind.
While memecoin’s bitcoin continues to dominate the cryptocurrency world. There are a number of other digital coins that investors and authorities are only now beginning to understand. Another memecoin’s based on the massively popular “Squid Game” Netflix series appeared out of nowhere last week. As market participants were riveted by the rise of Shiba Inu (SHIB).
It only took a few days for the squid coin to go supernova. Then collapse and burn when developers pulled the rug out from under the feet of hopeful cryptocurrency fortune-hunters. There is no soup for you, to borrow a term from that famous chef from Seinfeld.
The rapid increase in SHIB, as well as the memecoin’s corresponding decrease in squid. It couldn’t have come at a more opportune time. Stablecoins are a segment of the digital currency market whose values are pegged to fiat currencies. Such as the United States dollar or shorter-term securities. On Monday, the United States government presented a long-awaited set of recommendations. It is on how regulators and lawmakers should regard stablecoins.
This story has been covered extensively by Yahoo Finance’s Jennifer Schonberger. She, who has been following it for weeks. She noted that the inter-agency recommendations “are intended to curtail risks posed to the financial system.” And that regulators are urging Congress to require that issuers. “Become banks subject to oversight by the Federal Reserve and the Comptroller of the Currency.”
Crypto-gamers are Adamantly Opposed to the Concept
The Chamber of Digital Commerce (which also talked to Schonberger last week). And other crypto players, as one might anticipate, are fighting back against the notion. That an asset whose very existence is reliant on being stable could constitute a systemic risk.
The writing is on the wall for other market participants such as Circle co-founder. CEO and Chairman Jeremy Allaire, who wants to at the very least ensure. That they have the option to choose the ink.
“We wholeheartedly support the request for Congress to act and establish federal banking supervision. It is for stablecoin issuance,” Allaire said in a press release.
“In the age of cryptocurrency and blockchains. The rapid scaling and strategic importance of this to dollar competitiveness are essential considerations. He went on to say that this represents a significant step forward. In the acceptability of stablecoins and paves the way for their widespread adoption. As a basic infrastructure for financial and economic activities in the coming decade.
Given all that has happened in the globe recently. True-believer cryptocurrency “hodlers” can be forgiven for feeling. That this is yet another attempt by the government to seize more authority. However, the core challenge of regulation revolves on the reality that. For better or worse, bitcoin is becoming far more than just an asset class. This is the defining dilemma of cryptocurrency regulation.
The Emergence of ETFs
The development of ETFs and stablecoins is creating an ecosystem where people can trade digital coins. Borrow and lend against them, and perform transactions in their preferred crypto unit.
Acting Comptroller of the Currency Michael J. Hsu described it as “equally awe-inspiring and unsettling” on Monday. In a statement, he stated that while today’s dangers are largely trading-related. Tomorrow’s threats will be far broader. And it is incumbent upon regulators to be proactive.
“I wholeheartedly support the paper’s suggestions. “Stablecoins require federal prudential oversight to thrive,” Hsu noted.
In a world where cryptocurrencies have exploded. (A recent Morgan Stanley analysis pegged them at 10,000). It’s easy to see why governments want to appear proactive rather than reactive.
A new system of payments and transactions is emerging. That competes with traditional finance, Morgan Stanley analysts noted last week.
The crypto regime of leveraged price hikes is shifting to a regime of regulation, the bank stated.
The $2.5 trillion crypto industry projected to be worth $135 billion in stablecoins. Undeniably, the federal government would prefer to appear excessive than sleeping. At the wheel when a criminal act or market crisis occurs.