(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)
Seeds of Wisdom
FORMER NY FED PRESIDENT ARGUES BITCOIN COULD UNDERMINE USD, SUGGESTS PRIORITIZING REGULATORY FRAMEWORK
Bitcoin has recently surged past $100,000 following Donald Trump‘s e------n victory. Amidst broader market sentiments, the crypto community eagerly anticipates that T------------------n will prove to be pro-crypto and will stand behind his promise of a strategic BTC reserve for the United States.
Advocates believe it could serve as a hedge against inflation and a diversification tool in portfolios. However, Bill Dudley, former president of the Federal Reserve Bank of New York, has criticized Bitcoin’s role as money, describing its volatility and lack of income generation as its shortcomings.
As per a latest Bloomberg report, Bill Dudley, former president of the Federal Reserve Bank of New York, has expressed concerns over the idea of incorporating Bitcoin into the U.S. national reserves and argues that it would not benefit most Americans. He emphasized that such a move might not align with the nation’s best interests and could divert focus from more inclusive economic policies.
Can Bitcoin Undermine USD’s Status?
He noted that incorporating Bitcoin into the US national reserves could undermine the dollar’s status as the global reserve currency and primarily benefit specific interest groups rather than the broader American public.
Notably, Bill Dudley stated that Bitcoin is a weak asset, noting reasons such as price volatility, lack of widespread acceptance as payment, and slow and expensive transaction processes that make BTC a weak asset.
He also noted the risk of individuals losing access to their Bitcoin holdings and that, unlike traditional financial assets, Bitcoin does not generate income through interest or dividends. “Bitcoin is not connected to any cash flows like interest or dividends, and its price is driven purely by speculative demand,” he explained.
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The former Fed chair also noted that the absence of an exit strategy for a Bitcoin reserve would make it a liability. “The government would end up holding tokens that produce no income, offering no real value to the majority of Americans,” he said.
Suggests To Focus On Comprehensive Regulations-
Notably, Dudley argued that creating a Bitcoin reserve for the U.S. would require the Treasury to increase borrowing, raising debt servicing costs or requiring the Fed to print more money, ultimately fueling inflation.
Instead of focusing on Bitcoin as a reserve asset, Dudley has called for the T------------------n to prioritize creating a robust regulatory framework for the crypto industry.
He stressed the need for clear rules to protect consumers, regulate stablecoins, and prevent the use of cryptocurrencies in criminal activities. “Crypto technology has the potential to improve the financial system,” Dudley noted. “However, without strong guardrails, fraud and a---e will continue to undermine trust and hinder progress.”
Market Optimism Prevails
Nevertheless, there is market optimism amidst expectations of a more crypto-friendly administration. Also, the nomination of digital asset-friendly Paul Atkins to chair the SEC provided the final boost as bitcoin surpassed $100,000 to record highs.
Recently, Trump nominated venture capitalist David Sacks as the White House AI & Crypto Czar, who is expected to push Trump’s crypto and AI pro-innovation plans forward.
@ Newshounds News™
Source: Coinpedia
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GARY GENSLER QUIETLY SETS AGGRESSIVE CRYPTO CRACKDOWN IN MOTION BEFORE LEAVING, WARNS FORMER SEC OFFICIAL
SEC Chair Gary Gensler is orchestrating a last-minute push to cement aggressive crypto enforcement, with secret promotions signaling a looming regulatory crackdown despite leadership changes.
Former SEC Official Warns of Crypto Crackdown Despite Incoming Pro-Crypto Chair
John Reed Stark, former head of the U.S. Securities and Exchange Commission’s (SEC) Office of Internet Enforcement, has highlighted significant developments within the agency that he believes could impact the cryptocurrency sector.
“SEC Chair Gensler pulls off the first reverse Saturday Night M------e,” Stark wrote in a post on social media platform X on Wednesday, referencing Chair Gary Gensler’s recent moves.
Stark addressed the SEC’s leadership transition and the calculated steps Chair Gary Gensler is taking to solidify the agency’s enforcement priorities before leaving office. “It looks like former SEC Commissioner Paul Atkins will be the next SEC Chair. A phenomenal choice,” he wrote.
Known for his pro-business approach, Atkins is expected to bring a different focus to the SEC. However, Stark pointed out that Gensler has been laying the groundwork to ensure the agency’s crypto enforcement efforts remain robust. “Meanwhile, current SEC Chair Gary Gensler is quietly working behind the scenes to lead the SEC from the grave,” he noted, adding:
Along these lines, Gensler just promoted three of the best, brightest, experienced and most dedicated crypto-enforcement lawyers in SEC ranks to senior executive positions—running the SEC’s Trial Unit and running the SEC’s Crypto Unit.
Although the promotions have not been formally disclosed, Stark claimed they are already finalized. He noted the secrecy surrounding the moves, stating: “Interestingly, the SEC has not publicly announced these promotions and seems to be keeping them quiet (which is unprecedented). But these well-deserved promotions are a done deal.”
Crypto firms, Stark warned, should prepare for intensified regulatory pressure even after Gensler leaves office on Jan. 20. He predicted:
The Stark reality is that it looks like the crypto-fight is on post-January 20th. So get ready for World War III on day one Chair Atkins, because these three crypto-enforcement lawyers, who are now in charge, are some of the best in the business and will not roll over easily.
@ Newshounds News™
Source: Bitcoin News
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FINANCIAL REVOLUTION 2024: WHAT YOU NEED TO KNOW! | YouTube
@ Newshounds News™
Source: Seeds of Wisdom Team RV Currency Facts
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Source: Dinar Recaps
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