Category: CryptoNews

The bear market in 2022 has completely dampened the appetite of cryptocurrency investors, and the seemingly endless bull market in 2021 has completely changed after the successive bankruptcies of important companies in the “cryptocurrency” field such as Terra or FTX. This shift reminds investors of the dangers, yet key markets such as the U.S. are on the verge of hitting new all-time highs.

Anticipated Growth

According to Statista and Measure Protocol, the country’s cryptocurrency revenue is expected to double year-on-year to reach nearly $18 billion by 2023. The data suggest that many institutional investors in the U.S. have yet to revive their interest in cryptocurrencies after last year’s bear market.

Perceptions of Risk

A significant 324% of U.S. investors believe that cryptocurrencies are riskier than investing in traditional stock markets, while about 35% consider them equally risky. The statistics also showed that 375% of respondents believed that the stock market could be more profitable, while 27% believed that cryptocurrencies were a more profitable option.

The U.S. Market’s Position

Despite the lack of optimism, the U.S. remains the third-fastest-growing cryptocurrency market in the world, after the U.K. and Japan. Last year, the U.S. cryptocurrency market generated $8.63 billion in revenue, according to Statista.

Rising Number of Users

Likewise, the number of “cryptocurrency” users in the U.S. is set to increase significantly, with Statista predicting that 743 million U.S. citizens will use or invest in cryptocurrencies by 2023, up from 511 million a year ago. In addition, this number will continue to grow and will reach 100 million in 2027.

Preferences in Cryptocurrency Holdings

On the other hand, these figures show that Bitcoin (BTC) remains the favorite investment for cryptocurrency holders. As a result, 83% of people will hold some BTC in their digital portfolio, up from 76% last year, and holding Ethereum (ETH) compared to 2022, they will rebound 6% to 48%.

By 2023, Litecoin (LTC) will be the third most popular cryptocurrency with 24% ownership, almost double last year; Dogecoin (DOGE), which is closely related to Elon Musk, will rank 4th with 19% ownership despite losing 10% user velocity between years.

This detailed examination of the U.S. market sheds light on the complex and evolving attitudes towards cryptocurrencies, offering insights into both current skepticism and potential future growth. The mixed perspectives and rapidly changing landscape ensure that the cryptocurrency market will remain an intriguing area of focus for investors and analysts alike in the coming years.

“Monitoring Digital Currencies: A Legislative Initiative to Scrutinize Bitcoin’s Adoption as Legal Tender”

Introduction

Two U.S. senators, in a renewed effort to monitor the cryptocurrency landscape, have reintroduced a bill requiring reporting on the adoption of the Bitcoin cryptocurrency. This notable move comes as a reaction to the decision by El Salvador to adopt Bitcoin as legal tender in 2021. Initially, this initiative had been proposed in February 2022.

Senators Behind the Initiative

Senators Jim Risch and Bob Menéndez, both influential members of the Senate Foreign Relations Committee, have reintroduced the El Salvador Cryptocurrency Accountability Act (ACES). This is not just a standard legislative move; it represents a significant step towards bringing transparency to the use of cryptocurrencies. The law seeks to have the State Department, in collaboration with federal agencies and other organizations in the country, submit detailed reports on the use of Bitcoin in El Salvador.

Concerns Raised by the Senators

“Using cryptocurrencies as legal tender could weaken economic and financial stability and empower nefarious actors,” Risch passionately declared during a recent interview.

He continued, “Given the United States’ vested interest in Central America’s prosperity and transparency, it is imperative that we gain a clearer, more comprehensive understanding of how the adoption of Bitcoin as legal tender will affect various aspects of life in the region. This includes its potential impact on financial and economic stability and El Salvador’s ability to effectively combat money laundering and illicit finance. With these concerns in mind, I am proud to reintroduce the ACES Act to achieve this significant goal.”

Implications of the ACES Act

A recently published report provides an insight into what the ACES bill entails. If approved, it will mandate the creation of a State Department report that includes a thorough analysis of the adoption of Bitcoin as legal tender in El Salvador. The study would examine the risks associated with this bold move, focusing on potential threats to El Salvador’s cybersecurity, economic stability, and democratic governance. It is expected that the findings of this report would influence future decisions concerning cryptocurrency regulations both in the U.S. and potentially in other countries as well.

Conclusion

The reintroduction of the ACES Act represents a significant development in the evolving landscape of cryptocurrency regulation. It reflects the growing concern among U.S. legislators about the broader implications of cryptocurrencies on global financial stability and governance. As Bitcoin continues to gain traction worldwide, the actions of the U.S. Senate Foreign Relations Committee may set a precedent for other nations to follow. Only time will tell how this legislation will shape the future of digital currency, but its introduction serves as a compelling reminder of the need for transparency, oversight, and responsible management of this groundbreaking technology.

Does the US want to kill cryptocurrencies?

Perhaps.

Three years ago, most of the companies in the industry that Andrew Durgee’s firm invested in were based in the U.S.

He estimates just one in 10 are in the U.S. this year, reflecting what his firm sees as the country’s growing hostility to digital assets such as cryptocurrencies and tokens.

“The government is really targeting the industry. Regulatory uncertainty makes investing in the U.S. riskier,”

said Durgee, managing director of technology firm Republic’s cryptocurrency division. Other damage comes from the collapse of several high-profile cryptocurrency companies, which includes FTX, which is operated by the company. – Sam Bankman-Fried, known as the “King of Cryptocurrencies,” is accused by prosecutors of carrying out “one of the largest financial frauds” in U.S. history.

Shocked by the turmoil, U.S. regulators have stepped up oversight of the industry, with authorities saying they have been warning the industry since at least 2017 that its activities violated U.S. financial rules designed to protect investors.

The campaign has brought a steady stream of allegations against cryptocurrency companies and executives for violations, including failing to properly register with authorities and properly disclose their activities, as well as in some cases more damaging allegations such as improper handling consumer funds and fraud.

Bitcoin represents much of the value in an industry in which thousands of currencies circulate and is considered a commodity like gold by U.S. officials.

That means it’s largely untouched by the current regulatory debate that hinges on the legal question of what constitutes an investment, such as a stock or bond, regulated by the U.S. Securities and Exchange Commission (lSEC) as a “security.” its English abbreviation)

Instead, the focus has been on companies issuing tokens, or coins, to raise capital, and increasingly on exchanges that buy and sell such digital assets, which typically hold customer funds, execute trades, and engage with traditional financial institutions. unrelated other activities

The crackdown culminated in legal action this month against two of the largest platforms, Coinbase and Binance.

Binance is the billionaire Changpeng Zhao who founded the world’s largest cryptocurrency platform accused of creating a “deception network” in the US

SEC Chairman Gary Gensler defended the measures by comparing the state of the industry to the state of the industry in the 1920s in the United States before many of the rules discussed today were created: “Charlatans, charlatans, fraud artists, Ponzi schemes, the public lining up in bankruptcy court.”

Market sentiment has deteriorated significantly since 2021, when the industry was worth more than $3 trillion by some estimates and appears poised to grow further, said Will Paige, research analyst at Insider Intelligence.

“He’s back on the fringes of finance,” he said. “Confidence in the system has been damaged, and it’s bound to get worse.”

Bank of America Restricts Trading with Binance, Forces It to Stop Accepting USD, Customers Withdraw Billions After Lawsuit

Financial trading app Robinhood said it would stop listing some of the assets named in the lawsuit, citing “uncertainty” about the tokens.

Critics accuse Gensler’s SEC of hostile “coercive regulation” aimed at boosting its own political image.