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Under the recently proposed regulatory rules, a number of cryptocurrency ventures may face enforcement actions.
How the US government intends to regulate cryptocurrencies has been highlighted in recent months by statements made by key Biden administration officials, enforcement by regulators and several reports. Treasury Secretary Janet Yellen is calling for regulation of digital assets, particularly those denominated in dollars. Following the demise of the TerraUSD stablecoin in May, Yellen and several members of Congress pledged to create a more stable regulatory framework to protect American investors. Endogenously collateralized stablecoins are subject to a two-year ban, and all bank stablecoin issuers may be required to register with the Federal Reserve under a new stablecoin regulation bill released in draft form last week.
Recently, the Securities and Exchange Commission and the Commodity and Futures Trading Commission have increased the enforcement of cryptocurrency regulations. The SEC filed a lawsuit against Coinbase in July, listing “at least nine” signs that it should be considered securities in its opinion. Chairman Gary Gensler revealed that the agency is looking at all US-based cryptocurrency exchanges after it believes some of them are trading against their own users in violation of securities laws. The CFTC, traditionally seen as more lenient on cryptocurrency regulation than the SEC, has alarmed cryptocurrency users since filing the first-of-its-kind lawsuit against the decentralized autonomous organization Ooki DAO for allegedly operating an illegal derivatives trading platform. all right.
However, the White House’s preliminary regulatory framework for cryptocurrencies, published earlier this month, has laid out much of what surrounds crypto enforcement. The plan outlines how several government agencies will work to monitor the growth of the digital asset market and focus on objectives including increasing access to financial services and combating financial crime.
It’s becoming increasingly difficult to understand how everything fits into the current crypto scene with everything being created and distributed. Three cryptocurrencies that can be purchased under the recently published law are examined here.
Tornado Money (TORN)
The privacy protocol TORN token is likely to be the most visible cryptocurrency asset under future regulatory focus after the Treasury Department suspended Tornado Cash.
The protocol was approved by the Treasury’s Office of Foreign Assets Control on August 8 due to a “failure to implement effective safeguards” to stop money laundering related to cybercrime.
By allowing users to deposit ETH or USDC into one Ethereum address and withdraw it to another, Tornado Cash eliminates the traditional chain of custody found on open ledger blockchains. The protocol has been employed by many crypto-natives for legitimate reasons, such as financial anonymity, but has also become popular with hackers looking to disguise their stolen digital assets.
The Biden administration has made it clear that it intends to fight all forms of crypto-related crime through its regulatory framework for the industry. According to the study, state-backed North Korean syndicates such as the Lazar Group, which was responsible for several significant crypto breaches last year, have been using digital assets. Given such a harsh response to criminal organizations, any protocol that helps them channel their illicit funds into legal channels will be a priority for further enforcement.
Although the United States has ratified the Tornado Cash Protocol, making dealing with it illegal, there is currently little the government can do to enforce the ban. However, many alternative DeFi protocols intended to support US users have actively enforced the restrictions by disabling access to Tornado Cash-related addresses.
In response to the enforcement action against Tornado Cash, the price of TORN fell sharply, falling from a local high of $30.43 to $5.70 today. Future US crypto legislation is not expected to help Tornado Cash or the coin, as its developers have shown no interest in making the protocol compliant with anti-counterfeiting laws.
MakerDAO (MKR and DAI) Although the maker system and the highly correlated DAI stablecoin have not yet been included in any US crypto regulations, users believe it could be coming soon.
MakerDAO co-founder Rune Christensen has published an “ultimate plan” for the DAO governance platform, outlining how the protocol could be designed for future crypto regulation. Christensen’s idea is to borrow DAI from physical assets and use the interest to buy ETH on the open market. If MakerDAO is to consider allowing DAI to float free of the dollar peg, it will depend on how much it earns ETH over the next three years.
Because MakerDAO issues a stablecoin pegged to the dollar, according to Christensen, US regulators may pay attention to the company. When this happens, it is impossible to comply with anti-money laundering regulations as imposed on Tornado Cash, even if the manufacturer’s protocol requires it. According to Christensen, allowing DAI to come off the dollar peg and become a free-floating asset is the preferred long-term solution as it reduces the regulatory burden on the protocol.
Now, MakerDAO doesn’t seem to want to put such plans into action. Under Yellen’s watch, a draft of the House Stablecoin bill that has been released to the public shows more cautious regulation of stablecoins. Under the proposed draft, enforcement action would only be taken against stablecoins similar to Terra that are fully backed by tokens from the same issuer. The proposal would require all bank steel coin issuers to register with the Federal Reserve in order to continue providing the service to consumers in the United States. It is not clear whether MakerDAO can meet this requirement as the specifics of any legislation have yet to be established.
If MakerDAO fails to register as a bank stablecoin issuer in the United States, the value of the protocol’s MKR management token will be affected. DAI may be classified as a restricted asset in the US, and OFAC may impose sanctions on Maker Protocol smart contracts, as it did with Tornado Cash. Although it seems unlikely right now, the risk of MakerDAO control is something to be aware of.
Last on our list, Monero, like Tornado Cash or Maker, is the entire blockchain rather than the Ethereum protocol.
First released in 2014, Monero is probably the most popular and actively used privacy-focused blockchain available today. Transactions using Monero are completely private, unlike Bitcoin or Ethereum, which distribute all transactions and wallet accounts on a public ledger. The privacy and anonymity of all users are protected by various privacy protection features on the network: ring signatures, zero-knowledge authentications, hidden addresses, and IP address masking techniques.
Similar to Tornado Cash, Monro’s ability to hide its ownership and origin has angered US authorities. The Internal Revenue Service has begun paying a $625,000 cash reward in 2020 to anyone who can effectively break Monero’s anonymity and make its users’ transactions public. That bounty has never been offered, which shows how effective Monero’s privacy technology is.
However, Monero’s strength has a downside. It may increase the appeal of using the network for those seeking to protect financial privacy, but it also makes it a target for increased scrutiny and enforcement action. Cybercriminals use Monero for various illegal activities, like Tornado Cash. For example, the cybersecurity company Avast Monro finds malware that infects a victim’s computer and sends the proceeds back to the virus’s developer.
Although Monero is a strong candidate for enforcement under the current laws, nothing has been done to stop it. Authorities may have focused their attention on systems (such as Tornado Cash) with larger amounts of illegal transactions. But if the crypto industry — and Monero — continues to expand, it won’t be long until OFAC imposes more penalties on privacy technologies.
Any enforcement action against Monero will almost certainly affect XMR, as it did against Tornado Cash and TORN. As tokens cannot be proven to be illegally obtained, none currently allow deposits in Monero or work for XMR spot markets. More legislation would restrict access to the blockchain, both domestically and internationally, or make it illegal to send transactions through it, which is dire for XMR.
Future US Crypto Regulation
The future legislation could affect many more tokens besides Tornado Cash, MakerDao and Monero, which are among the cryptocurrency projects that could be affected. All protocols that enable the exchange of valuable crypto assets are expected to eventually be subject to anti-money laundering regulations, at least in the US.
As a growing list of failed Storicon ventures that have lost billions of dollars to US investors has weighed on the dollar’s stability, those issuing their own dollar-denominated stablecoins may face more scrutiny. However, it remains to be seen whether such legislation will hinder or encourage the widespread use of cryptocurrencies. While some recent SEC and CFTC cases seem to take a tougher stance against cryptocurrencies, others, like the House Stablecoin bill, are relatively mild.
Cryptocurrency regulation is on the way, whether people in the industry like it or not. Those who know and understand the potential consequences will be more prepared for change than those who bury their heads in the sand.
There is no talk of regulation yet in the P2E or NFT gaming world, but this particular coin deserves a mention here, because of its potential. The idea is similar to Tamagotchi in that users can buy a pet, feed it, and then go into battle with it once it grows up. Because a Play to Earn (P2E) platform, players can earn money while having fun and climbing the leaderboards by earning doge points. TAMA It is a utility meme coin that can be used to access all the unique features of the platform.
There is much to look forward to when the augmented reality software (AR application) is released in the fourth quarter of 2023. Being able to be close to their pets while using the app makes it much easier for players to decide to protect their lives. Security.
As a result, many people have turned to TAMA for investment due to the excitement brought about by its current level of success.
Tamadoge was recently listed on OKX, one of the most popular cryptocurrency exchanges in the world. This could act as a catalyst for price hikes in the coming days. Whether this activity is short-term in nature or not, the overall development of the project is widely believed to be strong.
TAMA’s full paper and road map can be read. over here.
Tamadoge – Meme Play to earn coins
- Get TAMA in battles with Doge’s pets
- Sealed Supply of 2 Billion, Token Burn
- Presale collected 19 million dollars in less than two months
- The upcoming ICO on the OKX exchange
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