US authorities caution banks about crypto dangers

Honestly, the whole FTX mess from last year isn’t doing us any favors in the crypto space. US regulators have come together for the first time to send out a warning to banks about the risks tied to the crypto market, and it looks like the main issue is the lack of oversight. They highlighted a few key points in the warning. Check out the full document here.

"It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system." I need to find a link from ~2 weeks ago, this quote you posted is extremely similar: In 2023 the Global economy might see the biggest collapse in modern history. The bankers and politicians who caused it are probably setting up to blame Crypto as the root cause. I have a hunch we will be seeing this "talking point" all over the news in coming weeks.

I had a quick glance at the PDF file and I don't think the situation in question should be portrayed as only having a negative impact on the crypto world [e.g. they did mention consumer protection on its second page]:

Almost all central banks around the world are issuing such warnings, and therefore there is nothing new about them and they are not related to FTX, although such scam/hack renews these claims. As long as they are warnings, nothing new has been taken, and they may have a bad / good side by speeding up the legal frameworks and imposing taxes instead of wasting time in the courts to prove who squandered the users' money.

The problem with all of this is to mix in the "crypto world" Bitcoin with more than 20,000 other crappy currencies. At heart these warnings are understandable, as the shitcoin market is very much a casino where the house in some cases cheats. Let's hope that Bitcoin is considered a commodity and the rest securities and people start to be clear about the difference.

Isn't that obvious? Cryptocurrency market thrives because nothing controls it. It is a true reflection of human dynamics at a global scale. No other markets show such kind of dynamics. That's what the problem is. Globally the central banks and other regulatory agencies control their own respective markets in the name of consumer protection. Crypto is only market where such nonsense controls are non-existent. Expect more of such alerts and warnings from many other regulatory bodies all around the world. That's bound to happen!

Checking projects for interaction with SEC https://www.sec.gov/edgar/search/ I have heard several stories that projects are closed for this reason. They understand that if they have a check from the regulators, then they will have huge fines that they will not be able to pay and a possible criminal case. Therefore, they hope that if they close now, they will be lucky.