Former Chairman of the US SEC: The US Cryptocurrency Discipline Is Struggling Unprecedented Monetary Regulatory Impression

John Reed Stark, former head of the Web Enforcement Workplace of the US Securities and Change Fee (SEC), acknowledged on the social media platform X that the US cryptocurrency discipline is struggling unprecedented monetary regulatory shocks.

Stark started by highlighting the Federal Reserve’s (Fed) new exercise regulation program launched on Aug. 8. A part of the plan, Stark stated, is to control U.S. banks’ participation in dollar-backed tokens, such because the lately launched PaypalUSD or different stablecoins.

This might be a difficult activity for many conventional banks because the Fed judges their capacity to handle the myriad of dangers related to these dollar-backed tokens. These dangers embrace cash laundering, buyer churn and hacking.

Stark then pointed to a different conventional regulator, the Federal Deposit Insurance coverage Company (FDIC), for its aggressive cryptocurrency regulation insurance policies.

Stark believes that U.S. cryptocurrency customers ought to view the aforementioned FIL as a precursor to the FDIC’s elevated regulation of all bank-related cryptocurrency transactions.

Stark drew consideration to a different comparable order issued by the U.S. Workplace of the Comptroller of the Foreign money (OCC).