Regulators around the world are currently struggling to grapple with the fallout of numerous crypto companies declaring bankruptcy and freezing customers' funds in their accounts. Since there is a current lack of legal regulations in place for the asset class and differences even within certain governments about who is in control of what there is an obvious need for clarity. August gave us some interesting insight into where not only American Government and Regulators are but also regulators outside the U.S. 

U.S. Government/Regulators

State Level

Not all of the news and movement is coming out of the Federal Government or Federal Agencies some states have decided to start looking into this since Federal action is lacking/behind the curve. It isn't a secret that "crypto influencers or Gurus" more often than not are individuals who have received some sort of payment for the crypto's they bring up or highlight. The lawsuit that BitBoy filed further highlighted this practice in the industry and highlighted to people who might not be aware that they do not always disclose that they had been paid to promote this. Director of the Texas State Securities Board Joe Rotunda has disclosed that some influencers are even teetering on the brink of not just violating disclosure laws but even worse pushing a knowingly fraudulent product. Texas might be a very crypto-friendly state but they are not going to just let everything fly and have filed cease and disease suits against a metaverse casino, Flamingo Casino Club, due to their promotion strategy and went so far as to identify the videos. When CNBC tried to reach out to the two content creators one denied being paid however deleted his video when asked further questions while the other creator has not commented on it. 

Federal Level

The Federal Reserve is also moving to release their new product FedNow which is an instant payment system. Some of the Federal Reserve Governor’s  actually think this might take the place of a CBDC as it would essentially allow for a ton of the benefits of a CBDC without having to build out any new infrastructure or change any systems. This could end up being a great move if it does in fact keep the U.S. government out of the CBDC game that other countries seem to be moving towards. 

Regulators Abroad

Singapore

Previously seen as the leader in crypto regulation and government taking an open-eyed non-smothering approach to crypto regulation rather than immediate and strict laws that could stifle the industry Singapore was seen as a safe place for crypto. However, with the collapse of Terra and 3AC those days are long long gone. In a move I am not sure many people would have expacted to see from teh Singapore regualtors they have turned the table on investors and actually moved to blame the investors themselves.

What I find particularly trubling about this is any they let these comapnies operate within there legal areas so if they were so bad they should have not allowed them. Furthermore Hodlnaut actually was granted a temporary license this year during the bear market so the regulators eitehr completely failed at looking at the companies books or they had no idea what they were doing. Instead of owning up to the failure though the regulators chose to blame investors even if those investors'  trust in the the regualtors. 

Iran

Due to the crippling effects of U.S. and European sanctions on its economy Iran has attempted to pivot to the blockchain to cirumvent them. With this move there are a whole host of issues that Iran will face and it honestly is highly unlikely they will be able to overcome. With the blockchain being transparent people will be able to track who is doing business with Iran and so they will suffer from sanctions. These payments in crypto will also have to be over collateralized to the upteenth degree to entice other companies outside Iran to do business with them and not only risk running afoul with other contires but also the value of the crypto itself. 

Please know I am not a financial advisor and make sure you do your own research! If you enjoyed this article and would like to support me further below are a few referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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