America compete, Russia flounders, IMF still angry

Therecome with the integration of the crypto space and conventional political institutions. However, one of the most intriguing benefits is the revelation of the obvious lack of cooperation ( within the system of power that rather looks monolithic. 

Naturally, digital assets are located in a parallel policy dimension in which neither a clear rule nor a centralized consensus exists. This leads to an unexpected variation in opinion and voices ensuing from the lack of political coordinated strategy. Close to the end of January, a lively and unique policy debate ensued in Russia following an attempt by its central bank to facilitate a rigid stance on crypto. This public interagency controversy about substantive campaigns is one that individuals don’t get to usually witness. 

Below is a short and concise rendition of the latest newsletter dubbed Law Decoded. 

Russia: Competing visions clash

In the wake of the blanket ban on cryptocurrency proposed by the Russian central bank, it was discovered that the Russian Ministry of Finance has been developing a regulatory framework for its own cryptocurrencies. According to the report, the regulatory framework proposed by the Russian Ministry of Finance is in direct opposition to the blanket ban proposal issued by the Central Bank of Russia. 

In summary, the ministry’s regulatory framework proposes the use of the conventional banking system to stimulate crypto payments. That’s not all, the proposal also entails grouping investors and traders as unqualified or qualified while introducing a solid financial management mechanism. In fact, Prime minister and ex-president Dmitry Medvedev came out strong to offer his support for the regulation instead of the blanket ban on crypto activities in the country. 

Clearly, the battle of narratives over how best to deal with the potential of crypto assets and virtual space continues in the halls of the Russian government. Right now, the outcome of the debate could be anyone’s guess. 

Tagging along with omnibus bills

The U.S government initially experimented with the inclusion of the complicated definition of a digital asset broker in the infrastructure bill last year. However, the strategy of covertly attaching anti-crypto requirements to huge must-pass bills could be the new weapon of crypto adversaries. 

After examining about 3,000 just-introduced America COMPETES Act, advocates for crypto were able to find a way out. They were able to find a section in the COMPETES Act that could mandate the Treasury Department to circumvent the logic of the fair process and prevailing checks. This will enable the Treasury Department to execute specific regulations against distinct financial transactions as well as those performed using various digital coins. 

Some of the measures could include outright prohibition or mandating surveillance on financial institutions to provide specific products and services. 

Spot BTC ETF shall not pass

The United States Securities and Exchange Commission’s (SEC) crypto-assets against exchanges that provide investors direcryassetsetso crypto assets is well recognized. As a result, the prominent rejection of another spot ETFin mid-January came as a surprise to anyone who actively followed the space. 

Likewise, the extension of the survey duration of another product related to BTC dubbed the ARK 21Shares Bitcoin didn’t also come as a surprise. It is believed that extending the deadlines as far as the rules allow is the most preferred technique employed by the regulator. 

However, several crypto analysts are beginning to see this market pattern as inclusive of the major crypto regulatory technique instead of a single policy. Eric Balchunas, the senior ETF analyst of Bloomberg asserted on Twitter that the SEC’s position on spot Bitcoin ETF vibes well with the rumors of the upcoming executive order of the Biden administration. The executive order is said to cast all crypto assets as a threat to national security. 

Meanwhile, the crypto market continues to struggle as bitcoin finds it difficult to break the $40,000 price range forming a consolidation pattern. Right now, Bitcoin is trading at the $38,000 price range with lots of investors hoping the digital coin will break to the outside. 

The latest bearish trend is said to have caused a dip of $1.75 trillion worth of crypto assets with altcoins bearing most of the losses. 

Leave a Comment