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"CryptoMom" Gets Second Term And Why This Is Important

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Cryptocurrency and digital assets are starting to get a lot of attention. What was complete FUD for the longest time has seen the coverage shift to something that is more positive. While it is not at the point where we would say it is supportive, at least the unsubstantiated attacks have dwindled a bit.

Much of this has to do with the fact that cryptocurrency showed itself to be resilient. The traditional establishment is fully aware that cryptocurrency is not going away. It tried to scare people off only to realize that was backfiring. Over the last couple years, a great deal of infrastructure was laid which made cryptocurrency more attractive to the masses. As we embark upon a global recession (depression?) people are only going to be looking for more alternatives.

Grayscale is leading the charge with the amount of people talking about it. One of the only ways to invest in cryptocurrency using retirement accounts in the United States. the company saw its holdings explode. Over the past couple months, this single entity is responsible for buying a large portion of the Bitcoin produced.

Now, we see that it is about to embark upon a national campaign to make cryptocurrency something that the masses are aware of. Certainly, this is going to be an educational endeavor since most people still have no idea how cryptocurrency works or the value of it.

This was tried by the Winklevoss Twins and their company, Gemini. However, they essentially are outsiders to the Wall Street community. Plus, their fund, while large in number, pales in comparison to what is the norm on Wall Street. Grayscale is working their way up the ladder very quickly.

https://cryptopotato.com/grayscale-brining-crypto-to-the-masses-with-national-ad-campaign/

News like this is coming at an opportune time. There is a lot of debate in political circles about where cryptocurrency stands. The United States, in particular, has been reamed out for its lack of clarity when it comes to regulation. It decided to apply laws that were written in the 1930s as a basis for determining the legality of digital assets.

One individual at the SEC thought this preposterous. Since her naming to the regulator, she was an outspoken ally of cryptocurrency. Often, she was the lone person opposing the decisions of the agency.

Fortunately, her nomination was just confirmed by the United States Senate. This means she will be in place until 2025. In other words, this is an action that is not affected by the election in November.

The United States Senate has voted in Commissioner Hester Peirce of the Securities and Exchange Commission for a second term that will see her remain with the regulator until 2025.

Source

Why is this so important? There are a couple reasons.

To start, any ally that cryptocurrency can have in the government is of benefit. It is an odd situation since the President, himself, as well as other members of the Administration, have publicly stated their opposing stance on Bitcoin. Nevertheless, Trump nomination Pierce for a second term.

Washington is built upon seniority. Pierce originally was nominated to filled a vacated seat. This means she was only going to be there for two years. Now, she moves up the ranks having already served for part of one term. As others see their terms expire and possibly depart, Pierce will have more say in the events at the Commission.

In fact, there is a chance that she could end up as Chair of the SEC. Jay Clayton, who presently holds the position, was nominated by Trump to take over as United States Attorney for the Southern District of NY. Clayton is no friend to cryptocurrency, seeing every effort at an ETF turned down during his watch.

Clayton will need to be confirmed by the Senate. Even though the Republicans presently control it, there is one strong Senator who is not an ally of Clayton; Chuck Schumer. He could use delay tactics to ensure Clayton's nomination does not make it to confirmation, at least until the next Congress. A change in either Senate control or the White House would alter this nomination path.

Getting back to Pierce, her confirmation comes at a time when cryptocurrency is in a much different place than a couple years ago. At that time, we saw the ICO craze died off and many were starting to complain about how they were scammed. This sent the SEC into police mode. It is a mindset that carries through until today.

However, Pierce is becoming a louder voice against the Commission's naive viewpoint. She accurately pointed out that the case against Telegram did not protect anyone. Essentially, it was a witch hunt designed to show the SEC's strength while hindering technological progress.

In the end, this is what Pierce believes the is what the Commission is doing. Without clear regulation, private innovation is moving overseas, leaving the United States behind. After all, she has openly stated that major innovations do not come from the public sector.

Cryptocurrency and digital assets are not fringe ideas anymore. Many central banks are looking at creating their own digital currency which, ironically, adds to the validity of the entire idea. Of course, this is more a matter of control as opposed to technological progress and freedom.

Since cryptocurrency is not going anywhere and is only expanding, this is an issue that is going to keep growing. Regulators are still on the side of trying to minimize the impact of it. After all, most exist to maintain the status quo.

Unfortunately for them, each day, as more cryptocurrency is distributed, the wealth of those involved keeps growing. This starts with the heavy hitters in Bitcoin, which is also ironically filled with some big Wall Street players, all the way down to the average individual who earnestly started acquiring crypto a few years ago.

Personally, I think the most fascinating part of this entire topic is not cryptocurrency but, rather, digital assets in general. As we see the growth of NFTs, as an example, how will the regulators deal with that? They are having a tough time with just basic currencies, how are they going to wrap their heads around the concept of tokenized assets that represent something in our virtual reality? What does that pertain to and how does the laws from the 1930s deal with that?

Once again, this is an innovation racing ahead of the regulators and political establishment. With the pace that technology is moving at, especially within this space, do not be surprised to see more innovation emerging over the next couple years that simply baffles these entities.

This is nothing more than a giant race. Will the cryptocurrency industry go at a fast enough pace that it simply overpowers the established institutions that are trying to contain it?

This is the challenge before us.


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Posted Using LeoFinance