Authorities attempt to suppress crypto-currencies.
CoinDesk’s, recent actions by the federal government, suggests that they are a coordinated attempt by authorities to harm the digital asset industry.
In its analysis of the situation surrounding U.S. cryptocurrency companies, the CoinDesk news portal editorial board suggests that the actions of the U.S. government and regulators are aimed at pushing the industry overseas.
“The editorial board believes that the existential threats facing the U.S. cryptocurrency industry because of recent government actions are enough to take a stand,” CoinDesk said.
The findings were facilitated by a series of actions by the Securities and Exchange Commission (SEC) against regulated U.S. cryptocurrency companies, including the Kraken and Coinbase exchanges, as well as the start of Commodity Futures Trading Commission (CFTC) legal actions against the Binance exchange.
To make matters worse, the President’s Economic Report, a policy statement issued by the US administration last week, argues that cryptocurrency is not a useful technology and has become a source of dangerous criminal activity.
In March, Reuters reported that the Federal Deposit Insurance Corporation (FDIC) was requiring potential buyers of Signature Bank to forego all cryptocurrency transactions, effectively denying banking services to large cryptocurrency companies. The FDIC denied this, but when the bank sale took place, cryptocurrency users were indeed excluded.
The U.S. government and regulators are pushing national cryptocurrency companies to think about moving abroad because, as reputable journalists believe, they fear they will not only lose business at home but won’t be able to access their own bank accounts.
The CoinDesk editorial board believes that most of the actions of the U.S. government were more punitive than constructive. Therefore, without a significant change of course from the Joseph Biden administration and supervisors, the perception that the U.S. is determined to destroy the crypto industry will be firmly entrenched in the minds of market participants and users.
On Thursday, March 30, the SEC charged cryptocurrency platform Beaxy with conducting brokerage and clearing activities without proper registration. The commission suspects Beaxy illegally raised $8 million by offering unregistered securities. The exchange said on its website that it was suspending operations indefinitely.