• Coinbase has reportedly been in talks with institutional investors about opening up an overseas cryptocurrency exchange.
• Recent regulatory actions have led to a turnaround in sentiment regarding the advancement of bitcoin and cryptocurrency in the U.S., with Kraken settling for $30 million in fines and Coinbase owing $100 million to New York State.
• The current administration is paying close attention to digital assets, while state governments like Arizona and Wyoming are showing their support for sovereign usage of bitcoin.
Coinbase Talks With Institutional Investors About Overseas Exchange
Coinbase has reportedly been in talks with institutional investors about establishing an alternative trading venue outside of its main marketplace, offering global clients access to cryptocurrencies.
Recent Regulatory Actions And Sentiment
Recently, there have been regulatory actions which have turned investor sentiment around on the potential success of bitcoin and cryptocurrency within the United States. For instance, Kraken settled for a $30 million fine from the SEC, while Coinbase was served a $100 million fine from New York regulators after it was alleged that they had violated anti-money-laundering laws by allowing users to open accounts without adequate background checks being conducted.
White House Roadmap To Mitigate Cryptocurrency Risks
The White House released a “Roadmap to Mitigate Cryptocurrencies’ Risks” earlier this year, which outlines the government’s plans for managing risks associated with digital assets such as Bitcoin or other cryptocurrencies. Additionally, the US Treasury Department has begun research into how it can implement or adopt Central Bank Digital Currencies (CBDCs).
State Governments Show Support For Sovereign Usage Of Bitcoin
While federal authorities seem keen on regulating digital assets such as bitcoin through either privatized currency (like a stablecoin) or adaptations of existing systems such as FedNow, some state governments like Arizona and Wyoming have shown their support for using bitcoin as a sovereign currency option. This demonstrates that there are differing opinions when it comes to monetary decisions within America’s financial system.
Given both recent financial instability issues within traditional banking systems and varying opinions on how best to manage digital asset regulations within America’s economy, serious attention should be paid to what might be best for future prosperity when it comes to money retaining its value versus debased money resulting from credit expansion cycles impacting banks.