The cryptocurrency market went through a whirlwind of challenges in 2022 and it appears there won’t be any respite for this year as well. As a result of successive regulatory roadblocks and the subsequent failure of notable companies, crypto has found itself in a queer position which almost seems as if an orchestrated effort is being pulled off to shun it down.
Binance CEO Raises Concern On Crypto
A similar opinion has been voiced by Binance CEO, Changpeng “CZ” Zhao as well. In a recent tweet, he speculated on the fact that considering all that was happening in the crypto space, it appeared as if a coordinated attack was taking place to “shutdown crypto friendly banks”, which in the long run, would be detrimental for the industry as a whole.
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However, he points out that although these attempts have impacted crypto to some extent, traditional financial institutions are currently failing, whereas blockchains remain operational due to their decentralized nature, which prevents any central authority from taking command. As can be seen in Bitcoin’s price, the flagship cryptocurrency has been able to hold on to its coveted $20K level even after the deluge of negative press reports and coverage.
In recent times, prominent U.S. authorities including the Federal Reserve, the OCC, FDIC, SEC, NYAG, NYDFS and the DOJ, alongside influential members of Congress seem hell-bent on destabilizing the growing crypto industry which has been challenging the traditional market for some time now. What is being rumored as an “Operation Choke Point”, the US is making it increasingly difficult for crypto businesses to operate and sustain.
Does Crypto Pose A Threat?
Cryptocurrency has recently established itself as a viable alternative to a number of conventional financial products and services available in the country. For instance, when compared to the interest rates on savings accounts offered by U.S. banks, which are now at 0.1%, the staking feature of cryptocurrencies enables users to receive rewards of up to 25% in certain circumstances. As a result of this, the Securities and Exchange Commission (SEC) has penalized Kraken, a California-based crypto exchange, and has even forced the firm to suspend its staking operations for U.S. customers.
It is important to emphasize that, as of right now, there is no real evidence of a government conspiracy to leverage political authority to shut crypto off from US banking rails. However, the back-to-back crackdowns on crypto-focused firms and certain specific scenarios have presented a rather gloomy picture that is hard to pass off as a mere coincidence.
Also Read: Bitcoin Price Unfazed By USDC Stablecoin Crisis, Signals At Upcoming Bull Run
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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