US finance ministry fires a rocket on cryptocurrencies; China prohibits them again

“ I could pump, but I do not throw the assets off .“

While the support or resistance to cryptocurrencies can be across generations, the conflict goes beyond the top -class comments that support or reject the asset class.

Control of the money supply is a core element of state power. The ideology of the cryptocurrency assistance is libertarian and contradicts the financial status quo. Cryptos return the control of governments to a collective marketplace that consists of individuals. If cryptos replace Fiat currencies, governments could not expand or shrink the money supply to expand or shrink growth, an essential power and control instrument.

We saw how the government and the supervisory authorities have fired some rockets onto the asset class in the past few weeks. This could only be a start to prevent the asset class from growing beyond its current market capitalization of $ 2 trillion.

governments may love blockchain, but they hate cryptos

The blockchain technology is supported almost unanimously, since Fintech offers speed and efficiency in the processing of transactions. Blockchain is either the child of Bitcoin or vice versa, which is the hen egg dilemma of the cryptocurrency classification class.

Many well -meaning systems and companies can have controversy or even bad consequences. The pharmaceutical industry saves life, but also abuse and drug addiction have cost life.

governments have accepted blockchain technology, but cryptocurrencies are a different story.

One of the roots of political power lies in the control of the wallet. The ability to expand and shrink the money supply is a critical function of the government. The current stimulus, which stabilized the US and global economy during global pandemic, is a perfect example.

cryptocurrencies are libertarian assets because they take control of the money supply to governments. The value of a cryptocurrency is a function of the commandments and offers on the market at all times.

Most cryptos have fixed supplies. They fly under the radar of governments, currency authorities and central banks. The rise of the cryptocurrency asset class is a direct ideological challenge for control and power of the government. While governments can support blockchain, Kryptos are therefore a completely different story.

sanctions for an exchange: Aid to cyber attacks

When El Salvador introduced Bitcoin as a national currency in early September, the alarm bells in the halls of power were probably started worldwide. Last week the US Ministry of Finance sanctioned a cryptocurrency exchange for its role in laundry ransom for cyber attacks.

The Ministry of Finance claims that the "Suex" exchange enabled transactions with illegal income from at least eight ransomware variants. We will probably see that the government's lawyers use “ know your customers ” to sanction the exchange.

How many opponents emphasize, cryptos are the perfect currencies for nefarious and criminal activities. Charlie Munger called her " disgusting." While the Ministry of Finance followed an exchange due to logical abuse, the ideological reason for roadblocks is also mandatory.

A fog veil to protect control - China prohibits the asset class again

I see the increasing number of regulatory measures against the cryptocurrency asset class as a coordinated attempt to keep the status quo. It is easier to take a regulatory leash before the overall market capitalization-and acceptance as a mainstream substance-grows. The escalating number of sanctions and regulatory measures is nothing more than a fog wall to maintain the status quo. If digital currencies dominate the markets in the coming years, governments will ensure that they dominate the cryptocurrencies available for trade and investments.

On September 24, the government declared all cryptocurrency transactions for illegal.

The SEC has fired a rocket on Coinbase

The recent step of the US Ministry of Finance is the second regulatory rocket of the past few weeks. The SEC has Coinbase Global (Nasdaq :) Sent a message to the US crypto exchange that intends to initiate a lawsuit to prevent the introduction of coin.

The SEC argues that " lend " is cryptos that they put under the regulatory umbrella of the agency. Coin has canceled its plans for the product after receiving the message.

Gary Gensler is the SEC chair. As head of the CFTC, he allowed contracts with contracts on the CME. During his break from service to US supervisory authorities, Chairman Gensler taught a fintech course on. Many market participants for cryptocurrencies believed that he would support the asset class with the Sec.

Last week the SEC Chairman said that he did not see long-term life capability of cryptocurrencies and compared it to the Wilden Bankenära in the United States, which took place from 1837 to 1863 without Bundesbank regulation.

Other regulatory attacks that aim to kill the beast and to threaten the status quo

el Salvador is a loner who introduces crypto as his national currency. In the meantime, China has made her illegal, with severe punishments for those who oppose the law.

The USA use the Ministry of Finance, the SEC and other supervisory authorities to "protect" investors and companies, but the goal is to protect the government's control over the money supply.

I assume that the number of regulatory measures and anti-crypto declarations will increase with the market capitalization of the investment class. Ray Dalio said best how governments can kill ”Bitcoin and the other cryptocurrencies.

The number of regulatory missiles will probably continue to increase. The problem is the ideology that runs counter to the status quo and government power. If you are completely regulated, cryptos will no longer return the power of money control to individuals, which is the attraction for many supporters.