The cryptocurrency market went through a whirlwind of challenges in 2022 and it appears as if there won’t be any respite for this year as well. As a result of successive regulatory roadblocks and the subsequent failure of notable companies, crypto has found itself in a queer position which almost seems like an orchestrated effort being pulled off to shun it down.
Binance CEO Raises Concern On Crypto
A similar opinion has been voiced by Binance CEO, Changpeng “CZ” Zhao, as well. In a recent tweet, he speculated that — considering all that was happening in the crypto space — it appeared as if a coordinated attack was taking place to “shutdown crypto friendly banks” which in the long run, would be detrimental for the industry as a whole.
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However, he points out that although these attempts have impacted crypto to some extent, traditional financial institutions are currently failing, whereas blockchains remain operational due to their decentralized nature, which prevents any central authority from taking command. As can be seen in Bitcoin’s price, the flagship cryptocurrency has been able to hold on to its coveted $20K level even after the deluge of regulatory hurdles, negative press reports and media coverage.
In recent times, prominent U.S. authorities including the Federal Reserve, the OCC, FDIC, SEC, NYAG, NYDFS and the DOJ, alongside influential members of Congress seem hell-bent on destabilizing the growing crypto industry which has been challenging the traditional market for some time now. What is being rumored as an “Operation Choke Point”, the US is making it increasingly difficult for crypto businesses to operate and sustain.
Does Crypto Pose A Threat?
Cryptocurrency has recently established itself as a viable alternative to a number of conventional financial products and services available in the country. For instance, when compared to the meager 0.1% interest rates on savings accounts offered by U.S. banks, the staking feature of cryptocurrencies enables users to earn rewards of up to 25% annually in certain scenarios. As a result of this, the SEC recently penalized Kraken, a California-based crypto exchange, and even forced the firm to suspend its staking operations for U.S. customers.
It’s still important to emphasize that, as of right now, there has been no real evidence of a government conspiracy to leverage political authority in order to shut crypto off the US banking rails. However, with back-to-back crypto crackdowns and the development of certain scenarios have certainly raised doubts in everyone’s mind as it’s hard to pass it off as a mere matter of coincidence.
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