The crypto market is booming and has surpassed the $2 trillion mark. While Bitcoin had stalled below $60k, it has broken this level and looks set to make new highs. However, even as it gains new upside momentum, some players in the field believe that governments could be getting ready to crack down on Bitcoin and crypto in general. In an interview with CNBC, Kraken CEO Jesse Powell stated that governments could soon crackdown against the market.
Powell’s remarks are not without basis. In the recent past, the rhetoric by people in places of authority has been largely negative. According to U.S Treasury Secretary Janet Yellen, cryptocurrencies could be used as a tool for illicit activities. Yellen’s sentiments are echoed by her counterpart in Europe. According to ECB President Christine Lagarde, Bitcoin, and other cryptocurrencies could be used for money laundering, terrorism financing, among other illegal activities.
These sentiments are not all new though. For a very long time, governments have been trying to reign in cryptocurrencies. An example is the India’s government that has tried to come up with laws trying to ban the assets altogether.
These efforts, however, have largely been futile due to the decentralized nature of these assets and because they are now deeply ingrained in the economy of these countries.
Not only that, we have witnessed the entrance of institutional players into the ecosystem, which is another sign of the level of the adoption of these digital coins.
A SEC commissioner Hester Pierce also believes that any move to ban cryptocurrencies would be counterproductive as its usage can not be curtailed or restricted.