Summary Overview
- The U.S. government has come out strongly against crypto, with its SEC taking a hard line on enforcement.
- The U.S. may be trying to protect the dollar from superior payment systems arising from the crypto sector.
- The U.S. could use its power and influence to try and persuade European governments to follow suit.
U.S Government’s Open Hostility Towards Crypto
The U.S. government has fully thrown off the veil and is openly hostile to crypto, with the Securities and Exchange Commission (SEC), headed up by Chairman Gary Gensler, taking a hard line on enforcement rather than sitting down and discussing how these companies can comply with regulations. This hostility appears to be in an effort to defend the dollar from what it perceives as threats of superior payment systems arising out of innovative breakthroughs in the crypto sector. The SEC is asking for more resources in order to bring more enforcement actions against crypto companies despite the banking system being on the edge of collapse in America right now.
Use Of U.S Power And Influence To Spread Anti-Crypto Sentiment
Given that U.S power and influence may be waning due to BRICS countries announcing their plan for a common currency, which is expected to eventually rival the dollar, this administration might be attempting to use its remaining time in office strategically by trying to eradicate crypto from American shores through influencing other governments around Europe take similar measures against digital assets too – all in an effort to protect their own currency reserve status quo going forward into next bull market period which is likely driven by Asia or other regions outside of USA-Europe control framework .
What Would Such An Action Mean?
If such an action were successful then it would mean that any progress made towards innovation within cryptocurrency would become significantly hindered as multiple jurisdictions begin implementing restrictions on trading activities within their respective territories – thus limiting opportunities available for masses who are already struggling under current socio economic conditions caused by Covid-19 pandemic crisis worldwide . Moreover, those investors who have already put their money into various digital asset projects would also suffer major losses since there will no longer be any channels open for them trade safely with minimal risk exposure .
Potential Outcomes Of A Worldwide Ban On Crypto
A potential ban against cryptocurrencies at a global level could lead drastic changes within entire finance industry as cryptos are currently being used extensively businesses ranging from payments processing , insurance , asset management , loans etc…. It would also make way for black markets where traders turn away regulation authorities as they continue trading illegally making things even worse situation overall .. Furthermore , people’s trust financial institutions could further erode if there no transparency governing transactions which take place digitally between parties leading more prevalent cases fraudulence & hacking attempts .
In conclusion , US government’s move increase pressure European nations adopt similar stance has been seen both positive light those opposed idea . It remains unclear whether or not US have enough clout convince Europeans implement such laws however one thing certain – world wide ban cryptos could severe implications future development & growth blockchain technology globally .