Cryptocurrency Expert: What Happens Tomorrow Will Be Boring!

Crypto policy expert Ron Hammond reported that banking regulators have launched “full-field pressure” against US crypto crypto companies. Regulations that directly concern market giants such as Binance confirm that this week will be busy.

Policy expert expects more regulatory action on the cryptocurrency market in the coming weeks

Ron Hammond, Director of Government Relations at the Blockchain Association, took to Twitter to express his dissatisfaction with the latest regulatory events in the crypto space. “Tomorrow may be Valentine’s Day, but don’t expect too much love for crypto at tomorrow’s Senate Banking hearing,” Hammond wrote in a critical thread about the contentious and much-discussed actions of the US Congress and banking regulators.

Hammond explains that it’s not just Congress, that banking regulators are launching full-field pressure against US crypto firms. It also touches on something the crypto community has noticed recently. The questionable pace of new rules, guidelines, legislation and hearings in 2023, which Hammond calls “brutal”.

Stablecoins are on regulators’ radar

Most surprising of the developments, according to the policy expert, is the aggression of federal banking regulators, who seem eager to single out crypto companies for 2023 in terms of banking relations. Hammond expands on these points, stating:

The latest rule, issued by the Fed last week, was one that made a lot of noise in DC. The February 7 letter reads more as a parting text than a policy statement. It not only bans cryptocurrency activities by state member banks, but also restricts stablecoin issuance and more.

SEC begins banning cryptocurrency staking products

Ron Hammond also touches on the staking sanction against Kraken and wonders what many other crypto companies might be discussing internally, considering the fiasco resulted in a deal. He adds that the need for legislation in the stablecoin space is now more critical than ever. Hammond concludes his bulleted article, asking his readers to expect further regulatory action in the coming weeks:

Tomorrow’s Senate Banking hearing will be much more meaningful than the celebrity hearing in December, and that’s by design. Opponents will likely approve of crypto leaving financial institutions, while crypto supporters will quickly attack the Fed/SEC.

Meanwhile, the SEC will target crypto firms operating as ‘qualified guardians’. As Bloomberg reported on Feb. 14, the SEC is working on a draft proposal that would make it harder for crypto companies to hold cryptocurrencies on behalf of their clients. According to the reports, a five-member SEC panel will vote on February 15 whether the proposal moves to the next stage. A majority vote – three-fifths – will be required before the rest of the SEC can formally vote on the proposal. If approved, the offer will be modified with feedback as needed.