August 19, 2022
Cryptocurrency Legislation: Brazil and US Abandon Regulation, Annoying Market Members;  understand

Cryptocurrency Legislation: Brazil and US Abandon Regulation, Annoying Market Members; understand

What started as something to slip out of the hands of nations and governments is now the focus of debate among lawmakers around the world. at Cryptocurrencies Both can be regulated at any time Brazil How much we America – But then.

It turns out Congress The respective countries are developing plans to regulate the cryptocurrency and digital asset market. According to pro-regulatory experts, the US is far behind in approving measures to provide greater protection for investors.

The same is happening here: a Bill (PL) to regulate digital currencies has been under discussion in the House since last year and is poised to be approved by the Chamber – but the election calendar has given way to plans.

Anyway, in America, the concern starts with one of the biggest thorns in the market: the Fixed Currencies, Supported Cryptocurrencies – Usually in dollars. These “stable currencies” have already been criticized by US Treasury Secretary Janet Yellen.

Cryptocurrency legislators vs. the clock

Unlike in Brazil, Congress America Takes a break in August.

The matter is expected to be considered in September this year, but the date is expected to be changed before November, when the assembly elections begin there.

In the Brazilian case, legislation may enter the Chamber agenda Anytime from August 1.

These cryptocurrencies are the backbone of decentralized finance (DeFi) and used to reduce transaction fees between digital currencies. However, its creation raised a red flag for US financial stability.

SEE ALSO: BITCOIN IS IN WORSE CONDITION

Against time

It is understood that regulation Fixed Currencies is missing.

After all, it is worth remembering that internal issues in the US Congress – inflation and rising fuel prices – as well as external issues – such as the war in Ukraine – have delayed the analysis of the proposal from the beginning. of the year.

Joe Biden, President of the United States and Janet Yellen They even exchanged barbs Around plans to regulate the cryptocurrency market as a whole.

Problems with Stablecoins, “Dollar” Cryptocurrencies

To recap, stablecoins are tokens (cryptocurrencies) backed by fiat currencies such as the dollar or real and are one-to-one equivalents.

Therefore, each token of a dollar-backed currency represents $1.

This problem does not exist today as the companies that issue these coins can be viewed as banks. This way, issuers don’t have to pay the same fees as financial institutions – which makes room for tax evasion and crimes against the popular economy.

That’s what happened Tether HoldingsCompany responsible for delivery Tether (USDT), the third largest cryptocurrency in the world. Supervisory bodies He alleged that the company did not have the ballast to issue more currencyThe company refused.

Also, it is worth recalling the case Terra (LUNA) and TerraUSD (UST)It caused billions of dollars in damages to millions of people.

Are cryptocurrencies on hold?

Consultation was conducted through sources Your money The report understands that laws to regulate the local market are overdue – this is because large exchanges, cryptocurrency brokers, They have already started looking at Brazil with hungry eyes.

The lack of well-defined guidelines makes it difficult to standardize activities, leaving companies to operate in a “grey area” where some activities harm others and create unfair competition.

In the United States, the issues are similar, and analysts there criticize the lack of American leadership in the global crypto landscape.