A recent NBC News poll found that 1 in 5 Americans have invested in, traded with, or used cryptocurrency, demonstrating their increased popularity. The highest share of people doing so is comprised of men between 18 and 49, with half of them saying that they have dabbled in cryptocurrencies. The poll also reflected that crypto was a preferred vehicle of investment for minority groups. 40% of Black Americans between the ages of 18 and 34 said that they have invested or traded in crypto.
Crypto advocates and supporters have long argued that cryptocurrencies offer faster transaction speeds, lower costs, better privacy and an excellent opportunity for unbanked communities to access financial services. The public seems to slowly understand these benefits and start capitalizing on the plethora of opportunities the crypto industry offers. This explains why the US Congress is ramping up its efforts to create a comprehensive regulatory framework for crypto.
Without regulation, the crypto industry looks like the ‘Wild West’, according to Gary Gensler, the Securities and Exchange Commission Chair. In a survey, only 19% of respondents said they viewed crypto positively, while 25% said they viewed crypto negatively. Most respondents (56%) are neutral or unsure about the crypto industry. And, while both Democrats and Republicans acknowledge the benefits of cryptocurrencies, they fear crypto scams and fraud make customers vulnerable.
Other Polls
The NBC News poll is not the first to quantify the number of Americans who have traded, bought, sold or used crypto assets. In 2018, Global Business Council and Survey Monkey conducted a survey with 5,761 participants in which 21% of participants were considering investing in cryptocurrency while 5% already had cryptocurrencies in their investment portfolio. Less than 20% of participants trust the government, while 25% trust the Bitcoin network. 28% of participants saw cryptocurrency as a store of value, while 63% viewed crypto as a growth investment.
Another study conducted by Nordvpn in February 2022 showed that 7 in 10 Americans, or 68% of participants, said they were aware of the risks of cryptocurrencies. Almost an equal number of participants had some understanding of what cryptocurrency is.
These polls demonstrate that the interest in cryptocurrencies is growing among Americans. While most have some knowledge about cryptocurrencies, there is a clear need for a regulatory framework for crypto to protect investors.
On 9 March 2022, President Joe Biden signed an executive order asking the government to examine the risks and benefits of cryptocurrencies. The executive order asks federal agencies to take a unified approach to the regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Read this Term of digital assets. The agencies have to focus on the following areas:
1. Consumer and investor protection
Consumer protection is an integral part of the executive order. There have been several scams and fraud where investors have lost millions of dollars. The Biden administration has instructed the Treasury Department to ensure sufficient oversight and safeguards against any financial risks posed by cryptocurrencies. Additionally, the Biden administration is keen to regulate stablecoins whose value is pegged to the US dollar. If handled properly, stablecoins can promote faster and more efficient payments. Congress wants to pass legislation that allows only insured banks to issue stablecoins. This move will give federal agencies greater jurisdiction over their operations, management and associated risks.
2. US position and competitiveness in global markets
The executive order focuses on leveraging digital assets to provide a competitive edge to the US over other countries. The Department of Commerce is being asked to establish a crypto framework that drives US leadership and competitiveness in harnessing the power of cryptocurrencies. The government is also seeking the support of several important players like Coinbase.
Additionally, the Biden administration wants to explore the possibility of a digital dollar. This is especially important because China has already launched its digital yuan. With its own central bank-backed digital currencies, China allows its citizens to make payments using their smartphones. Last year, the Federal Reserve issued its long-awaited report on virtual currencies, listing the pros and cons of digital assets. However, it did not say whether the US should issue its own digital dollar or not.
3. Illegal activities
This is one of the key focus areas of Biden’s executive order. He wants to eliminate illicit crypto activities in the industry. The President has asked federal agencies to coordinate, mitigating any financial and national security risks posed by digital assets. He wants all the major federal agencies, including the Federal Deposit Insurance Corp. and the Federal Reserve, to coordinate on the issue. Last month, the Department of Justice seized $3.6 billion worth of Bitcoin, which was stolen in 2016 when Bitfinex was hacked. The current value of the stolen cryptocurrency is around $4.5 billion.
Additionally, US regulators have expressed concerns over using cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
Read this Term by Russians to evade international sanctions. However, crypto exchanges have said that Russians cannot convert their funds into cryptocurrency since all transactions take place on a public ledger called the blockchain.
4. Climate Change and Responsible Innovation
Furthermore, the executive order focused on one of the critical issues associated with cryptocurrencies: climate change. Cryptocurrency mining involves using large amounts of energy to perform complex transactions. For Bitcoin mining, a mechanism called proof of work is employed that generates new cryptocurrencies by confirming transactions. This requires a lot of computing power as miners have to solve complicated puzzles to mine cryptocurrencies. The greater their computing power, the more chances the miners have to be rewarded in cryptocurrencies. The executive order asked the government to study how they can make cryptocurrency innovation more responsible by reducing its impact on the environment and climate change. China banned crypto mining last year to minimize cryptocurrency’s impact on the environment. This has led Chinese crypto miners to move to other countries, including the US.
As the interest in cryptocurrencies increases, the Biden administration is taking progressive steps to develop a framework for effectively regulating cryptocurrencies. This demonstrates a strong commitment to innovation and consumer protection and is a hopeful sign for the future of cryptocurrency.
A recent NBC News poll found that 1 in 5 Americans have invested in, traded with, or used cryptocurrency, demonstrating their increased popularity. The highest share of people doing so is comprised of men between 18 and 49, with half of them saying that they have dabbled in cryptocurrencies. The poll also reflected that crypto was a preferred vehicle of investment for minority groups. 40% of Black Americans between the ages of 18 and 34 said that they have invested or traded in crypto.
Crypto advocates and supporters have long argued that cryptocurrencies offer faster transaction speeds, lower costs, better privacy and an excellent opportunity for unbanked communities to access financial services. The public seems to slowly understand these benefits and start capitalizing on the plethora of opportunities the crypto industry offers. This explains why the US Congress is ramping up its efforts to create a comprehensive regulatory framework for crypto.
Without regulation, the crypto industry looks like the ‘Wild West’, according to Gary Gensler, the Securities and Exchange Commission Chair. In a survey, only 19% of respondents said they viewed crypto positively, while 25% said they viewed crypto negatively. Most respondents (56%) are neutral or unsure about the crypto industry. And, while both Democrats and Republicans acknowledge the benefits of cryptocurrencies, they fear crypto scams and fraud make customers vulnerable.
Other Polls
The NBC News poll is not the first to quantify the number of Americans who have traded, bought, sold or used crypto assets. In 2018, Global Business Council and Survey Monkey conducted a survey with 5,761 participants in which 21% of participants were considering investing in cryptocurrency while 5% already had cryptocurrencies in their investment portfolio. Less than 20% of participants trust the government, while 25% trust the Bitcoin network. 28% of participants saw cryptocurrency as a store of value, while 63% viewed crypto as a growth investment.
Another study conducted by Nordvpn in February 2022 showed that 7 in 10 Americans, or 68% of participants, said they were aware of the risks of cryptocurrencies. Almost an equal number of participants had some understanding of what cryptocurrency is.
These polls demonstrate that the interest in cryptocurrencies is growing among Americans. While most have some knowledge about cryptocurrencies, there is a clear need for a regulatory framework for crypto to protect investors.
On 9 March 2022, President Joe Biden signed an executive order asking the government to examine the risks and benefits of cryptocurrencies. The executive order asks federal agencies to take a unified approach to the regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges.
Read this Term of digital assets. The agencies have to focus on the following areas:
1. Consumer and investor protection
Consumer protection is an integral part of the executive order. There have been several scams and fraud where investors have lost millions of dollars. The Biden administration has instructed the Treasury Department to ensure sufficient oversight and safeguards against any financial risks posed by cryptocurrencies. Additionally, the Biden administration is keen to regulate stablecoins whose value is pegged to the US dollar. If handled properly, stablecoins can promote faster and more efficient payments. Congress wants to pass legislation that allows only insured banks to issue stablecoins. This move will give federal agencies greater jurisdiction over their operations, management and associated risks.
2. US position and competitiveness in global markets
The executive order focuses on leveraging digital assets to provide a competitive edge to the US over other countries. The Department of Commerce is being asked to establish a crypto framework that drives US leadership and competitiveness in harnessing the power of cryptocurrencies. The government is also seeking the support of several important players like Coinbase.
Additionally, the Biden administration wants to explore the possibility of a digital dollar. This is especially important because China has already launched its digital yuan. With its own central bank-backed digital currencies, China allows its citizens to make payments using their smartphones. Last year, the Federal Reserve issued its long-awaited report on virtual currencies, listing the pros and cons of digital assets. However, it did not say whether the US should issue its own digital dollar or not.
3. Illegal activities
This is one of the key focus areas of Biden’s executive order. He wants to eliminate illicit crypto activities in the industry. The President has asked federal agencies to coordinate, mitigating any financial and national security risks posed by digital assets. He wants all the major federal agencies, including the Federal Deposit Insurance Corp. and the Federal Reserve, to coordinate on the issue. Last month, the Department of Justice seized $3.6 billion worth of Bitcoin, which was stolen in 2016 when Bitfinex was hacked. The current value of the stolen cryptocurrency is around $4.5 billion.
Additionally, US regulators have expressed concerns over using cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
Read this Term by Russians to evade international sanctions. However, crypto exchanges have said that Russians cannot convert their funds into cryptocurrency since all transactions take place on a public ledger called the blockchain.
4. Climate Change and Responsible Innovation
Furthermore, the executive order focused on one of the critical issues associated with cryptocurrencies: climate change. Cryptocurrency mining involves using large amounts of energy to perform complex transactions. For Bitcoin mining, a mechanism called proof of work is employed that generates new cryptocurrencies by confirming transactions. This requires a lot of computing power as miners have to solve complicated puzzles to mine cryptocurrencies. The greater their computing power, the more chances the miners have to be rewarded in cryptocurrencies. The executive order asked the government to study how they can make cryptocurrency innovation more responsible by reducing its impact on the environment and climate change. China banned crypto mining last year to minimize cryptocurrency’s impact on the environment. This has led Chinese crypto miners to move to other countries, including the US.
As the interest in cryptocurrencies increases, the Biden administration is taking progressive steps to develop a framework for effectively regulating cryptocurrencies. This demonstrates a strong commitment to innovation and consumer protection and is a hopeful sign for the future of cryptocurrency.
Source: https://www.financemagnates.com/cryptocurrency/nbc-poll-shows-1-in-5-americans-have-invested-or-traded-in-cryptocurrency/