In 2021, crypto devotees were persuaded that the US government had it in for them. And this is not without reason, as a thread of arrangements by the SEC and other controllers propose that government authorities are not at a commonplace with the industry, but rather a threat to it.
The reason for this is not yet known. In as much as several crypto supporters are of the opinion that the government is shady, the reality of it all is that the Biden administration is in pursuit of a cunning plan of action to caution an industry it sees as a threat.
Interview rounds with past regulators and administrators at top crypto industries reveal a complicated plan not to put down crypto but rather adopt it by giving a significant part of the industry – stablecoins – to the big banks. Regulators believe that taking this action will bring the independent crypto economy under their control.
Maya Zehavi, a crypto entrepreneur and investor who has advised regulators, believes that the whole idea has been carefully thought through. It aims to hinder the crypto industry from growing fast or too much.
Although many see the spirited SEC Chair Gary Geosler as the brain behind the Biden Administration’s hostile crypto policies, his hand in it has been exaggerated. It appears that Senator Elizabeth Warren, Treasury Secretary Janet Yellen, and a host of Federal Reserve Veterans are in charge of this operation.
As reported by Zehavi and a few others, the Biden Administration doesn’t want to eliminate stablecoins entirely. Instead, the goal is to destroy what the legislators recognize as “shady” operations like Tether while coming up with supposed “regulator-beneficial” ones like Paxos under the disguise of America’s banking system.
Current actions by regulators show that the plan is already being initiated. The uncertainty now is whether the crypto industry can avert being retained by the supposed big banks it set out to disorganize. Bitcoin was birthed in 2008, but it would take over a decade for the American government to take crypto as a serious matter. When it eventually did, it was as a result of the stablecoins.
Executive director of the non-profit Coin Center, Jerry Brito stated the announcement by Facebook in 2019 considering launching its digital currency was a turning point. The company stated that the currency, initially called Libra, was to be a stablecoin attached to a bulk of government-issued cryptocurrencies.
Facebook was barely the first to brood on the idea of a stable coin. In 2014, crypto users banked on digital tokens attached to supposed bills like the Euro or the US dollar. During the period Facebook announced offering a stablecoin to its over 2 billion users, the parliament went into action. The company’s crypto intentions illustrated not just an upcoming product but also an objection to the government’s power over the wallet.
Definitely, there are present indications that the banking agencies have started exercising their power against the crypto community quietly. The signals that the banks are enclosing the stablecoin market. In inclusion is the banking giant Barclays that pays for the promotion of research, stating that a hybrid approach is safer for stablecoins, whereby accounts are to be managed and handled by authorized financial service providers just like commercial banks.