The US regulatory attack is now also affecting non-bank financial companies.
The finance minister insists the Bitcoin ecosystem needs “stronger regulation.”
According to recent statements from US Treasury Secretary Janet Yellen, the banking sector needs less regulation. “Banks are the backbone of our economy and have a special privilege,” he said at a news conference.
These are controversial comments that were not published in most media and were also hinted at, according to an article in Bitcoin Magazine Suspicion of illegal activity through the financial system.
The statements are seen as a recognition that the Bitcoin network is not just, as is often assumed, the only avenue for illegal actions. However, the Treasury Department’s wake-up call was appropriate place companies other than banks under strict supervision the Federal Reserve.
The announcement was made in a statement reporting that the Financial Stability Oversight Council (FSOC) voted unanimously to develop a new analytical framework for non-bank financial companies. This is due to growing concerns arising from the fact that more and more financial activities, including lending, They migrate to non-banks.
They relate in particular to the work of asset managers, hedge and investment funds and other financial institutions that are now believed to pose risks to the financial system.
Treasury plan includes significantly stronger supervision for some large companies of the financial sector that are not banks, points to Scripture without mentioning it. He added that the process would be gradual.
Strict rules for non-bank financial companies, including Bitcoin
The FSOC announcement comes in a context in which the US government appears to be not only tightening its regulatory measures against the non-bank financial group, but also also about the ecosystem of Bitcoin (BTC) and other cryptocurrencies.
We are dealing with another sector that also attracts the interest of the financial public and to which many Americans have migrated, as evidenced by the high adoption rate of Bitcoin in the country. Interest is growing, particularly among institutional investors, which include: Investment funds and asset managers are now subject to greater supervision.
The finance minister is calling for greater regulation of the cryptocurrency ecosystem, arguing that they are used for money laundering and terrorist financing.
Under this premise, Yellen urges the Group of 20 (G20) to accelerate the process of developing standards for global ecosystem regulation.
“We have not proposed an outright ban on crypto activities, but establishing a strong regulatory framework is critical,” Yellen said. “We are working with other governments,” he admitted.
All of this appears to be happening at the same time as calls for banking deregulation, a measure that contradicts some of the official’s public statements within the banking crisis which broke out in the United States earlier this year.
The same Companies such as Signature Bank, First Republic Bank and Silicon Valley Bank were involved. At the time, Yellen questioned Donald Trump’s administration’s deregulation.
As previously reported by CriptoNoticias Things are not looking good for the US banking system. Especially after four of the largest banks on Wall Street: JP Morgan Chase, Bank of America, Citigroup and Goldman Sachs collapsed on the stock market a few days ago, dragged down by fears of an economic recession.