Meanwhile,
Cryptocurrency: revolution takes shape under:
Cryptocurrency market
The crypto revolution takes shape under the Trump era
New American laws transform the status of cryptocurrencies. Meanwhile, This liberalization could hide the germs of a future economic crisis.
A cryptocurrency created by the start-up World Liberty Financial will become exchangeable. Moreover, which unlocks a new financial windfall for the Trump clan (Eric Trump and Donald Trump Jr. Similarly, on the right).
Kamil Krzaczynski/AFP
- American representatives adopt three major laws to regulate cryptocurrencies.
- The Trump family invests massively in cryptocurrencies via various companies.
- “Stablecoins” could reach 1600 billion cryptocurrency: revolution takes shape under dollars by 2030.
The game was worth the candle. However, Last year. However, lobbyists in the sector of cryptocurrencies had invested hundreds of millions of dollars in the electoral campaigns of candidates favorable to cryptoactives.
After the Senate. Consequently, the House of Representatives also took the plunge on Thursday by adopting three laws intended to regulate the market.
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The Genius Actwhich is now subject to the signing of Trump, regulates the stablecoins. However, These are cryptocurrencies. In addition, the price of which is attached to another cryptocurrency, a fiduciary currency or a negotiated product on the stock market, such as precious metals or industrial metals. Similarly, They can be sent twenty-four for twenty-four worldwide. Nevertheless, The law allows banks and other companies to issue their own stablecoins.
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The Clarity cryptocurrency: revolution takes shape under Act Defines the criteria to determine whether a digital asset constitutes a valuable value. However, The new regulations. Therefore, which must still be adopted by the Senate, will subtract Bitcoin and most other cryptocurrencies with strict supervision of Securities and Exchange Commission (SEC), an autonomous government agency which in 1934 replaced the Federal Trade Commission in the control of financial operations and markets.
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L’Anti-CBDC Surveillance State Act Forbidden to create. Nevertheless, issue or promote a digital currency from a central bank (Central Bank Digital Currency or CBDC).
Thus. In addition, cryptocurrencies gradually abandon their reputation for assets located between Far West Financial, Speculation and illegal transactions to integrate the heart of the regulated financial system. Similarly, This new deal could lastingly transform the world of modern financial services.
At the start of the week. Moreover, Bitcoin crossed cryptocurrency: revolution takes shape under the $ 120,000 threshold for the first timedoped by the hope of new regulations favorable to cryptocurrencies.
The Ether coursethe second largest cryptocurrency jumped more than 20% in a week. This increase is explained by the anticipation of an increasing adoption of the blockchain Ethereum by banks. other companies to issue their stablecoins.
Cryptocurrency: revolution takes shape under
Trump wants to make America the undisputed superpower of Bitcoin
President Donald Trump’s family invests billions in cryptoactivities. THE Trump Media & Technology Group plans to buy bitcoins for billions of dollars. At the same time, Melania Trump and her husband market their own memecoinswhile his sons Eric and Donald Trump Jr. created World Liberty Financiala young company specializing in cryptocurrencies.
The American president cryptocurrency: revolution takes shape under promised during his electoral campaign to make the United States a “superpower of Bitcoin”. The new laws must trigger a wave of innovation. allow the emergence of new commercial models and ensure the world domination of the US dollar in the digital age.
THE stablecoins promise faster and cheaper transactions between countries. They could effectively compete with Visa. Mastercard credit card systems as well as traditional, often expensive bank transfers, provided they obtain the confidence of the general public thanks to a quality label issued by the authorities.
The new regulations are an important step for the cryptocurrency sector. Hopes are great. as evidenced by banking analyzes on the recent Introduction of Circle Internet Group, which manages the stablecoin USDC. According to Citigroup calculations, the emissions of stablecoins could jump from around $ 260 billion to 1600 billion cryptocurrency: revolution takes shape under by 2030. Standard Charterd talks about 2 billions in just three years.
JPMorgan is just as optimistic. But only in the department that managed Circle, as noted by the “Financial Times”. Analysts of the Global Markets Strategy Markets consider the exponential growth announced for the stablecoins.
Huge gains thanks to “stablecoins”
Thus, the payment sector does not necessarily promise strong growth. Indeed, transactions in stablecoin are cheap in digital version. As soon as they are converted to dollars, costs apply. According to JPMorgan, the segment of illegal activities, so far important for stablecoinsshould not experience excessive development.
These prudent growth forecasts are explained in particular by the new law. which prohibits transmitters from paying interest or yields to the holders of their stablecoins. The more cryptocurrency: revolution takes shape under interest rates of other assets are high, the more demand for these stablecoins should be weak. The ban on interest protects banks, which are authorized to attract investors with yields to other assets.
Until now. Additionally, the issuers of stablecoins have achieved enormous benefits by investing the funds collected in remunerative assets, such as state obligations. In return, they have no interest in holders of stablecoins Or offer them out of derisory rates.
Biggest stablecoinTether, would have made a profit of $ 13 billion last year with only a hundred employees. This performance is explained by the absence of high costs of regulatory compliance that weigh on traditional banks.
A renowned professor warns against “economic chaos”
Not everyone is in favor of new legislation. The law “would sow the cryptocurrency: revolution takes shape under seeds of the next financial crisis“Said Maxine Waters. the leading democrat of the Financial Services Committee of the House of Representatives.
The renowned American economist Barry Eichengreen warns that the new law “will provoke economic chaos”. In a test for the “New York Times”. he recalled that in the XIXe A century, private companies had already been authorized to issue their own currency by promising to cover it entirely by guarantees.
This situation caused a widespread disorder. numerous banking bankruptcies, in the absence of compliance with the rules and sufficient surveillance. The authorities would today have already been exceeded by the supervision of banks.
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With the authorization of stablecoinsthe situation will still be much worse. The collapse of a stablecoin Authorized by law could endanger the financial stability of the whole system, alerts the expert. If the value of one or more stablecoins fell, panic investors would immediately remove their funds. The issuers should then sell their guarantees to reimburse them. Finally, the regulatory authorities would be forced to intervene to avoid the collapse of the payment system.
A study by the International Regulations Bank support the economist’s thesis. “THE stablecoins constitute a bridge by which cryptocurrency market shocks can spread to the traditional financial system. A “rush” on a large stablecoin could trigger forced sales of American state bonds, thus threatening market stability. ”
Translated from German by Emmanuelle Stevan
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