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Fed Chair Jerome Powell Warns of Crypto ‘Turmoil, Fraud, and Run Risk’ – Monitor Now!

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Federal Reserve Chairman Jerome Powell today said that the crypto space needs to be monitored closely because it is full of turmoil—but innovation in the world’s biggest economy should not be stifled. Testifying on Capitol Hill in front of lawmakers Tuesday, Powell was asked about the cryptocurrency space. He said that the U.S. central bank had been “quite active” in that area, adding that the Fed does not want to stifle innovation. But he added that regulated financial institutions supervised by the Fed need to take “great care” in how they engage with the crypto space.

The crypto space was rocked by a number of high-profile bankruptcies and controversies last year. The most significant was the collapse of Sam Bankman-Fried’s digital asset exchange FTX, which blew up in November because of criminal mismanagement, U.S. prosecutors allege.

The main topic of the policy discussion today was inflation—which is sky high in the U.S. The Fed has been trying to get it down by raising interest rates: Last year, it started raising them by 75 basis points four times, and then slowed down by hiking them by only 50 basis points. This negatively impacted the price of Bitcoin—and the wider crypto market—because, like U.S. equities, it is a risk-on asset. When interest rates are high and there is financial uncertainty, investors tend to look for safer things to park their cash.

Most recently the central bank upped interest rates by 25 basis points. But today, Powell said that the Fed could lift interest rates higher and potentially faster than expected because inflation is still too high. “Core inflation has come down but nowhere near as far as we hoped and it has a long way to go,” he said. Stocks dipped on the news—and so did Bitcoin: the largest digital asset by market cap fell as low as $22,120 following the remarks. It has since climbed back up and stands at $22,250, according to CoinGecko.

This news means that the Federal Reserve is closely monitoring the crypto space due to the fraud, lack of transparency, and other risks that it poses. They are not trying to stifle innovation, but they want regulated financial institutions to be careful when engaging with the space. The news of higher interest rates has had a negative impact on the crypto market, as investors tend to look for safer places to put their money when interest rates are high and there is financial uncertainty. #Crypto #FederalReserve #Inflation #Bitcoin #Economy

You can read more about this topic here: Decrypt: Fed Chair Jerome Powell: Crypto ‘Turmoil, Fraud, Run Risk’ Is Being Monitored

The post Fed Chair Jerome Powell Warns of Crypto ‘Turmoil, Fraud, and Run Risk’ – Monitor Now! first appeared on Byte Syze Crypto.

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Justin Sun Predicts Huobi Crypto Exchange to Secure Hong Kong License in Under a Year

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Tron founder and advisor to the exchange, Justin Sun, has stated that Huobi could get a Hong Kong crypto license in six to twelve months. Specifically, Sun told Coindesk that the exchange applied to become a virtual asset service provider (VASP) last week. Additionally, Sun discussed the process of the VASP application and his belief that the crypto exchange could have an answer by the end of the year. Huobi had recently relocated to Hong Kong, aiming to launch Huobi Hong Kong by the summer. Sun was asked about embracing potential competition in the Canadian market and noted the strict regulatory standards in the country, referring to the Caribbean, Hong Kong, and Japan. There has been no verification of other cryptocurrency exchanges that have applied for a similar license, however, Coindesk reported Sun’s expectation that five to six other exchanges could make the move.

This news is good for Huobi as they are in the process of obtaining a crypto license in Hong Kong, which would allow them to operate in the region and serve customers. Other exchanges may also apply for the license, and the grace period given to the exchange could provide them with the opportunity to get approval in the next six to twelve months.

#Huobi #HongKong #CryptoLicense #VASP #JustinSun

You can read more about this topic here: Watcher Guru: Justin Sun Says Huobi Could Get Hong Kong Crypto License in 6-12 Months

The post Justin Sun Predicts Huobi Crypto Exchange to Secure Hong Kong License in Under a Year first appeared on Byte Syze Crypto.

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Crypto Rug Pulls: How $45 Million In Defi Attacks Were Lost In May

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#CryptoSafety #RugPulls #DefiExploits #ProtectInvestors

You can read more about this topic here: Watcher Guru: Crypto Rug Pulls Outvalued Defi Attacks in May, $45 Million Lost

The post Crypto Rug Pulls: How $45 Million In Defi Attacks Were Lost In May first appeared on Byte Syze Crypto.

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CFTC Set to Revamp Risk Regulations: How it Impacts the Crypto Industry

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The Commodity Futures Trading Commission (CFTC) has proposed a re-modelled rule-set for risk management as part of its effort to respond to the U.S. banking crisis. Commissioner Christy Goldsmith Romero highlighted the need for such regulations due to the risks posed by the emergence of technologies like crypto, AI, and cloud services. The CFTC’s advance notice of proposed rulemaking will be open for public comments for 60 days. The final version will then be voted upon. #CFTC #RiskManagement #Crypto #Regulations

You can read more about this topic here: Watcher Guru: Crypto: U.S. CFTC Looking to Change Risk Rules

The post CFTC Set to Revamp Risk Regulations: How it Impacts the Crypto Industry first appeared on Byte Syze Crypto.

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