Prices are divided as stocks plummet over Fed-Policy concerns in the Crypto Column

Prices are divided as stocks plummet over Fed-Policy concerns in the Crypto Column ...

Bitcoin prices were mixed on Monday as investors reacted to fresh covid restrictions in China and concerns about economic growth in the United States.

According to the last estimate, Bitcoin fell 2% to $38,815. Ethereum decreased 2.2 percent to $2,859, while dogecoin increased 5.5 percent to $0.139650.

'A Steady Downfall'

"Bitcoin has experienced a steady downturn, notwithstanding the $40k mark today, with a less than promising outlook," says Keegan Francis, a bitcoin and cryptocurrency specialist.

"The decline comes after Federal Reserve Chairman Jerome Powell suggested that the central bank increase interest rates by a half percentage point."

Despite falling prices, Francis said, "bitcoins on chain metrics suggest a supply shock in the near future."

"In the wake of global economic turmoil, similar structures in the past have resulted in a surge, but the price of bitcoin and other mediums might go either way," said the president.

In the midst of its invasion of Ukraine, US regulators have taken steps against Russia.

Last week, the US Treasury Department for the first time levied sanctions on a.

'Exodus of Miners'

The company, a Russian bitcoin-mining company named BitRiver, has been placed on the Treasury Department's Office of Foreign Asset Control.

Winston Ma, a managing partner of and author of "How China's Tech Power Shapes the Future of AI, Blockchain, and Cyberspace," said sanctions against Russia may impair Russia's multibillion-dollar cryptocurrency industry, causing damage to worldwide crypto markets.

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According to Ma, the department took the action "deoarece Russia may monetize its vast oil reserves with power-intensive crypto mining to raise funds and combat western sanctions."

The reason for this was not surprising: "given that shortly after the Russia-Ukraine conflict, Treasury Secretary Janet Yellen announced that the US would monitor cryptocurrency as a means to Russia to escape sanctions from the US-led governments."

"There's going to be a mass exodus of miners from Russia, and there's might be a disruption to global hash power and crypto mining, like China's crypto crackdown in 2021," he said.

'Going Beyond its Authority': 'Going Beyond It'

According to David Lesperance, the managing partner of immigration and tax adviser at, crypto exchanges have made a lobbying effort to favor the Federal Trade Commission over the Securities and Exchange Commission in regulating cryptocurrencies.

When Paul Grewal, the chief legal officer for Coinbase (), challenged the SEC over its suggestion to update its definition of an exchange, declaring that the commission is."

According to Lesperance, the January SEC proposal expanded the definition of an exchange to "systemes that enable the use of non-firm trading interest and communications protocols to connect buyers and sellers."

"Teach announcement has prompted crypto exchanges to adopt it," he said. "They are reticing to take over the Chair of the SEC, believing that 'the definition of an exchange' should be updated so that there are options for all kinds of asset classes that draw together buyers and sellers."

'Rules of the Road'

"This must be a transparent and open process," Grewal said at the start of the letter. "As I've said it before, these decisions are too important to be made in a black box."

Grewal "the proposed definition is so broad that it may potentially encompass several types of systems that are in no way "generally understood" to perform the functions of a stock exchange."

"That's why the SEC must be precise when it comes to modifying definitions." Grewal said the company should provide clear guidelines to the market as to how its rules will be applied in order to meet its administrative obligations.

Illustratively, Lesperance said, "It's evident that the recent for the Federal Trade Commission and the Securities and Exchange Commission to reach an immediate agreement on regulatory jurisdiction is required to clear the air and provide the roads with the rules."

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