Discussion
Select and analyze current news articles covering cryptocurrencies, current FED monetary policy, or negative interest rate subjects, and discuss your findings.
https://www.cnn.com/markets
https://www.bloomberg.com/
https://www.forbes.com/?sh=8fc965f2254c
https://seekingalpha.com/
https://www.thisismoney.co.uk/money/index.html
https://www.thestreet.com/
https://hbr.org/
https://www.marketwatch.com/
also:
1 paragraph reply to this post:
The article “White House Outlines Plan To Regulate Cryptocurrencies” (2022), addresses the critical need to protect consumers against deceptive practices by crypto companies. Because crypto currency markets are unregulated, their transactions pose greater risk as compared to the stock market. Through the framework, President Biden aims to coordinate efforts between the Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to aggressively pursue inquiries into unlawful practices such as money laundering, digital scams and fraud, and black market activities. To combat the ability to use crypto currency for illegal practices, the framework also incorporates the possibility of expanding the Bank Secrecy Act (BSA) to include cryptocurrencies and non-fungible tokens (NFTs). Specifically, the President is considering urging Congress to raise the penalties for unlicensed money transmitting to match the penalties for similar crimes under other money-laundering statutes (The White House, 2022). However, the most important component of the framework is the exploration of the U.S creating a digital dollar as an alternative to regulate crypto currency transactions.
In addition to regulating crypto currency transactions, the article also highlights the threats to national security. Digital assets introduce national security risk because non-state actors can use crypto currency to disrupt sovereignty and increase political and/or economic Power (Baron, et al, 2022). As a result, the Pentagon has tasked the Defense Advanced Research Projects Agency (DARPA), to create a detailed view of crypto markets inner workings, in part to help authorities crack down on illicit uses of digital assets. Newmyer (2022), stated, the financial sector may be a component of modern warfare going forward, and anything we can do to reinforce and protect the U.S. financial sector and our allies financial sectors is beneficial. This is problematic given that in 2021, over 65 percent of Bitcoin global market supply originated in China. Should China or any of our adversaries disrupt the crypto market, the U.S dollar would be negatively impacted causing the dollar to be dethroned as the worlds reserve country. (Marks and Harvilicz, 2021).
In my analysis of the article, I find that the author succinctly addressed President Bidens plan to regulate cryptocurrency. By listing key facts of the framework in a bulleted format, the article was easy to read and comprehend. However, despite addressing the key points of the framework, the article lacked sufficient details pinpointing the cause for the need to implement cryptocurrency regulations. I also found that due to the conciseness of the article, external research was needed to gain a better understanding of the background and events that lead to the need for the framework. I wish that the author expounded on the key facts as opposed to leaving the reader to connect the dots, the implications of not regulating cryptocurrency and the impact to U.S financial leadership globally, and the financial benefit of creating a digital U.S. dollar.
