• Rep. Maxine Waters has expressed her disapproval of PayPal’s stablecoin and has called for its regulation in line with that of other financial institutions.
• Coinbase’s Ethereum layer-2 chain Base is now available to the public, and Bitstamp will cease trading seven tokens identified as securities by the SEC in Coinbase and Binance cases.
• Bittrex Global CEO Oliver Linch has indicated that his company does not accept US customers due to the uncertain regulatory environment in the United States.
Rep. Maxine Waters Criticizes PayPal’s Stablecoin
Rep. Maxine Waters has criticized PayPal’s foray into the world of stablecoins, calling for regulations on par with those imposed on traditional financial institutions. A jury trial between the SEC and Ripple Labs is set to take place in Q2 2024, while Coinbase’s Ethereum layer-2 chain Base is now live to the public.
Federal Reserve Regulatory Requirements
The Federal Reserve requires state banks to obtain a written “non-objection” from the central bank before engaging with any stablecoins. This is indicative of increased scrutiny towards digital assets by U.S financial authorities, as evidenced by recent legal action taken against firms like Coinbase and Binance by both the SEC and CFTC for federal law violations.
Bitstamp Halts U.S Trading
In response to this increased oversight, crypto exchange Bitstamp announced it would halt U.S trading of seven tokens identified as securities by the SEC in both Coinbase and Binance cases. This decision further highlights how stringent American regulators have become when it comes to cryptocurrencies, creating an inhospitable environment for many crypto companies operating within U.S borders or providing services to U.S customers .
Bittrex Bypasses US Customers
Bittrex Global CEO Oliver Linch noted that market participants are increasingly wary of dealing with businesses related to the United States because of this regulatory uncertainty surrounding cryptocurrencies in America . As such, his exchange made substantial investments so it can avoid accepting any US customers altogether .
As more scrutiny gets placed on cryptocurrency businesses operating within or providing services to US customers , exchanges like Bittrex are looking for ways around these restrictions while industry leaders like Rep .Maxine Waters call for stricter regulations on digital assets .