Cryptocurrency is becoming an important issue in the 2024 election, with candidates and voters taking stances on its regulation and use.
Bitcoin and crypto could experience significant growth in the next few months, with September expected to be a particularly eventful period, including the potential impact of U.S. bitcoin ETF filings and China declaring crypto as "legal property and protected by law."
The rejection of a new bill on cryptocurrency regulation by the Australian Senate reflects the country's cautious approach and leaves the industry without legal guidelines as crypto innovation continues.
The lack of a fully regulated financial market in the US contradicts global economic interdependence, and as a result, the crypto industry is moving offshore rapidly; however, the US government is likely to eventually establish a clear regulatory framework and invest in blockchain R&D, thus strengthening the industry.
The United States Federal Reserve's financial woes and potential implications for cryptocurrency are discussed on the latest episode of "Macro Markets," highlighting challenges posed by inflation and the consequences of loose monetary policies during the pandemic.
The US Federal Reserve is still in the early research phase and far from making any decisions on a central bank digital currency, according to Federal Reserve Vice Chairman Michael Barr, who also emphasized the need for clear support from the executive branch and legislation from Congress before any moves are made. Barr expressed concerns about stablecoins and called for strong federal oversight to avoid risks to financial stability and the US payments system.
Lawmakers in the United States have a limited amount of time to pass crucial spending legislation and avoid a government shutdown, which could have major impacts on federal agencies, federal employees, and various services provided to Americans.
Republican lawmakers are reintroducing a bill to block the Federal Reserve from issuing a central bank digital currency, citing concerns about surveillance and government control over financial data.
There is a possibility of a government shutdown as Congress faces a deadline to pass 12 spending bills, with the most likely scenario being a continuing resolution to extend last year's spending levels for a designated period of time.
The Blockchain Association reflects on the past five years of the crypto industry's challenges in Washington D.C. and highlights potential future areas of focus, including anti-money laundering efforts, passing crypto-related legislation, and the possibility of regulatory personnel changes.
Lawmakers in Congress have less than two weeks to reach a deal on funding the government past September 30, and there is a risk of a partial government shutdown if an agreement is not reached. Some GOP groups are discussing a 30-day stopgap spending patch with border security measures attached, but a shutdown is expected to be short-term.
A bipartisan bill backed by Elizabeth Warren to target money laundering in crypto has gained support from key lawmakers, but its passage remains uncertain due to a divided Congress and opposition from crypto lobbyists.
States are taking the lead in regulating cryptocurrency as federal policy makers struggle to pass comprehensive legislation.
Brazilian lawmakers are considering a bill that would protect individuals' savings, including cryptocurrencies, from potential seizure by creditors.
A bill has been approved by the House Financial Services Committee in the United States to prevent the creation of a U.S. central bank digital currency (CBDC), with Republicans accused of hindering innovation, while its prospects in the Senate remain uncertain.
Crypto legislation is unlikely to progress in the current US Senate, according to former Senator Pat Toomey, despite recent progress in the House, although the lack of a clear position from Senate Banking Committee Chairman Sherrod Brown may be seen as a positive sign according to Coinbase's policy chief.
The US government faces a potential shutdown if Congress fails to agree on funding past September 30, which would be the first shutdown since December 2018 and could result in a longer standoff between parties.
The federal government is at risk of shutting down on October 1 if a last-minute spending deal is not reached, potentially leading to delayed paychecks for millions of federal workers and negative effects on the economy, according to the AP.
If lawmakers fail to pass a budget by October 1, the government will shut down and it could have several negative impacts on the economy, such as furloughed workers, difficulty in obtaining mortgages, and the Federal Reserve lacking important data for monetary policy decisions.
The CEO of the Blockchain Association, Kristin Smith, argues that rules and regulations surrounding stablecoins and cryptocurrency hinder innovation and that the U.S. government's stalling on legislation could impede the advancement of technology as a whole.
Cryptocurrency prices remained stable over the past week, with Bitcoin holding steady at $26,569 and Ethereum experiencing a slight 2.8% drop to trade at $1,592, while Chainlink saw a 12% increase. Adoption of cryptocurrencies continues, with Citigroup launching a digital token service and PayPal enabling Venmo users to purchase its stablecoin. In political news, the former chair of the FCA admitted facing political pressure regarding crypto regulations, and the HFSC passed the CBDC Anti-Surveillance State Act to prevent the issuance of a Central Bank Digital Currency in the US.
Lawmakers in the U.S. House and Senate have until September 30 to pass a spending bill to fund the government and avoid a shutdown, with Republican and Democrat leaders trying to navigate internal disagreements in their respective parties.
Sen. Kirsten Gillibrand is rallying fellow Democrats in Congress, particularly those on the Senate Banking Committee, to prioritize crypto regulation and believes that bipartisan support can be achieved through conversation and socialization of ideas in her digital assets bill co-authored with Sen. Cynthia Lummis; however, progress in the Senate remains uncertain due to crypto skepticism among some lawmakers and the current funding stalemate that may result in a government shutdown.
Experts suggest that the crypto industry's most urgent needs, such as SEC decisions on ETF applications and progress in court cases, won't be entirely derailed by a potential government shutdown, although there may be temporary slowdowns and a halt to SEC enforcement against crypto firms. Federal courtrooms are expected to operate normally for a few weeks, and criminal trials will continue, but the progress of cryptocurrency legislation in Congress may be stalled. If the shutdown persists, it may have significant repercussions as unpaid employees leave and government offices exhaust their funds.
The Securities and Exchange Commission is still considering Bitcoin exchange-traded funds, but a potential government shutdown could cause delays.
The US economy is facing turbulence as inflation rates rise, causing losses in US Treasuries and raising concerns about the impact of high interest rates on assets like Bitcoin and the stock market. With additional government debt expected to mature in the next year, there is a fear of financial instability and the potential for severe disruptions in the financial system. The Federal Reserve may continue to support the financial system through emergency credit lines, which could benefit assets like Bitcoin.
Congress's failure to pass the 12 yearlong spending bills that fund the federal government has led to a looming shutdown, leaving lawmakers scrambling to find a bipartisan solution to temporarily fund federal agencies and avoid a shutdown.
Lawmakers in the United States are facing a potential government shutdown as they struggle to pass legislation that would keep the government funded beyond the start of the fiscal year, which could result in the closure of federal agencies and services.
The U.S. stock market faced a challenging September due to negative risk sentiment, with Treasury yields reaching their highest levels in over 15 years, and concerns over a government shutdown causing anxiety among investors; meanwhile, the Senate Banking Committee has approved a bill that would grant legal cannabis businesses access to banks, JPMorgan CEO Jamie Dimon expressed concern over interest rates surging to 7%, and the resumption of federal student loan repayments in October could lead to financial stress for millions of Americans.
The Federal Reserve and oil prices are in focus this week as the economic calendar remains busy, while the crypto market has experienced a surge in momentum over the weekend, with Bitcoin reaching its highest level since August 17.
Bitcoin's sharp rally on October 1 may have been influenced by a temporary agreement reached by US legislators to avert a government shutdown, combined with the historically strong performance of Bitcoin in October, while the US stock markets are also in a favorable position this month. However, the rising US dollar index could pose a challenge for the bulls in the cryptocurrency markets.
The recent uncertainty regarding the United States debt limit and the subsequent signing of the spending bill by President Joe Biden led investors to question the momentum for cryptocurrencies, but with an extension in place, lawmakers need to find a solution before November 17 to avoid further economic risks. Bitcoin has experienced a price increase, prompting investors to anticipate volatility as the debt ceiling decision approaches, and a recommended neutral-market strategy involving options trading is suggested for investors looking to mitigate potential losses and profits.
The market capitalization of stablecoins has dropped by 35% in the past 18 months due to factors such as reduced retail participation, surging US treasury yield, and high opportunity cost, with only a few stablecoins like USDT remaining resilient and dominant in the market. The decline is attributed to traditional finance rates exceeding crypto-native yields, and the market share decline of US-native stablecoins is seen as a result of U.S. regulation hostility. Stablecoins are considered the "killer app" of the crypto industry, comprising a significant portion of settlement activity on public blockchains. The trend is expected to reverse when there is revived interest in crypto trading, steady interest rate cuts, and a pro-crypto regulatory environment.
The leadership mess in the U.S. House of Representatives could disrupt crypto legislation, casting uncertainty on the industry's hopes for clear regulatory rules and leaving it at risk of being sidelined as a volatile financial sector. The budget debate and the search for a new speaker of the House may delay progress, but there is still a possibility for crypto bills to advance before the end of the year. However, the Senate remains a hurdle, as there is limited enthusiasm among senators for crypto legislation.
Bitcoin and other major cryptocurrencies are struggling to maintain their early 2023 gains due to the U.S. government's crackdown on crypto, prompting billionaire hedge fund manager Paul Tudor Jones to stockpile bitcoin and gold amid the "cataclysmic" fiscal situation in the country.
The US Oversight and Accountability Committee is frustrated with SEC Chair Gary Gensler for not disclosing documents related to the SEC's involvement in European social engineering initiatives, amid growing concerns over his cautious stance towards cryptocurrencies and his intensified regulatory scrutiny of the industry. Meanwhile, the macroeconomic landscape is focused on relaxing financial conditions, potentially leading to significant developments in the cryptocurrency market, particularly for altcoins like Chainlink, Polygon, Cardano, Ripple, and Polkadot.
Bitcoin, along with other major cryptocurrencies, has been impacted by the unstable U.S. fiscal situation and the potential collapse of the U.S. dollar, while Wall Street giants like BlackRock are poised to embrace bitcoin and revolutionize finance.
Crypto finance, despite its claims of decentralization and independence from state-backed money, is heavily dependent on centralized platforms and is a vehicle for financial speculation rather than a means of escape from state control, according to Ramaa Vasudevan, professor of economics. Moreover, the growth of crypto will compound the volatility of global capitalism and its environmental impact is significant due to the energy-intensive process of mining and validating crypto tokens. The rise of stablecoins has been crucial in the development of crypto finance, but it is ultimately dependent on conventional currencies for stability. The recent crash of crypto finance has revealed its fragility and the absence of central banks as lenders of last resort exacerbates financial instability. Crypto finance fits into the wider picture of financialization and asset-price bubbles, promoting inequality and concentration of wealth. Ultimately, the politics of money and its relationship with the state are contested in the crypto sphere, as it neither depoliticizes nor democratizes money. Finally, crypto finance has become a battleground in the economic competition between the United States and China, with both countries striving for dominance in the digital currency space.
Digital currencies, particularly payment stablecoins, have the potential to upgrade America's financial system and benefit families and businesses by making transactions easier, faster, and cheaper, but this can only be achieved if Washington passes stablecoin legislation that prioritizes financial stability and consumer safety.
The U.S. government is increasing its scrutiny of the cryptocurrency industry following reports of Hamas receiving funding through digital currencies, prompting lawmakers to demand a plan from the White House and Treasury to prevent crypto financing of terrorism.
The crypto industry is actively lobbying Congress for laws that clarify how cryptocurrencies will be regulated, with recent events highlighting the industry's financial support for political campaigns.
Cryptocurrency markets are facing challenges in 2023 due to tightening monetary policies, the resurgence of the U.S. dollar, and concerns about inflation, leading to decreased trading volumes and reduced risk appetite among investors.
