Janet Yellen Crypto Ban
In a controversial move, US Treasury Secretary Janet Yellen has proposed banning large financial institutions from trading in cryptocurrencies. This ban, if passed by Congress, would have far-reaching effects on the crypto market and its participants.
The proposal was made at a Senate Banking Committee hearing on February 10th 2021 and is intended to combat money laundering and terrorist financing through digital currencies such as Bitcoin. Under this ban, banks would not be allowed to own or trade cryptocurrencies like other assets. Exchanges that offer crypto services would also be prohibited from offering their services directly to customers of these banks in the United States.
While there are some who applaud the proposed ban as an attempt to regulate the industry more thoroughly, there are many who disapprove of it due to its potential impact on smaller investors and traders alike – especially those without access to alternative banking options – who may be left out of the market altogether if they cannot find another way to purchase cryptocurrency with fiat currency. It could also limit customer choice when it comes to purchasing digital assets since fewer exchanges will offer them under this rule change.
Supporters of the proposal argue that stringent regulations are needed for protecting consumers from fraudsters operating in crypto markets while opponents say that such measures could stifle innovation and economic growth within the industry itself by limiting access for regular citizens who wish to invest in cryptocurrencies but do not have access or understanding about complex DeFi protocols or decentralized exchanges (DEXs).
While it is unclear what kind of response this ban will receive from lawmakers or how much influence it will have over existing cryptocurrency markets, one thing is certain: any changes imposed by this new law should be carefully monitored going forward so that all stakeholders can make informed decisions about their investments accordingly.
