User trust in the crypto ecosystem has taken a major hit since the fall of bitcoin. With the collapse of FTX it has deeply crumbled, to the point of starting a wave of reforms for the entire sector. In the United States in particular, many analysts believe that user and investor confidence has little chance of being restored without a review of how this market works.
The market will no longer benefit from the passivity of the legislators
In a television program broadcast on Thursday, January 12, Representative Jim Himes spoke about the crisis that is currently shaking the crypto industry, in the United States in particular. According to his analysis, this market is making congressmen increasingly skeptical.
While these have remained tolerant, even passive, in the face of a spectacular development of the crypto ecosystem in recent years, the situation inverted. This is after the spectacular crash of the FTX exchange and the waves of bankruptcies it caused around the world.
Without “complete implosion” of FTX, the lawmaker believes the universe around the blockchain and metaverse would continue to float leisurely on the river of its own rules, the official noted. An operating mode partly endorsed by the passivity of public authorities, against the backdrop of the thinly veiled political actions of industry tycoons such as Sam Bankman-Fried, the former CEO of FTX.
Through gestures “generous”, including, for example, the funding of several political campaigns, including that of President Biden, SBF had managed to divert the attention of public authorities. Therefore, the latter had so far not considered the establishment of the rigorous standards that the cryptocurrency market needed.
The FTX case offers the United States an opportunity to catch up
The scandal has undoubtedly opened a Pandora’s box in the cryptocurrency industry, leading to a chain of unfortunate consequences for the actors. It certainly also offers American leaders an opportunity to catch up. For them it would be about starting and setting up a “smart regulation” covering the entire crypto ecosystem.
“I think this is possible in Congress”, says Jim Himes. For this reason, a first regulatory solution would be to generalize the use of stablecoins. These are cryptocurrencies that are defined as stable, because they are backed by a fiat currency or a product traded on the stock exchange.
However, Himes wishes to see this regulatory effort harmonized with those currently being undertaken in Asia or Europe, where the crypto craze has literally exploded.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.