The Financial Stability Oversight Council (FSOC) voted unanimously to submit two new structures for public comment. One of them will ensure transparency in relation to the stock market. Another would tighten rules for non-banks such as hedge funds and cryptocurrency companies. In the United States, they are trying to strengthen control over the crypto market.
The proposals come a month after the FSOC was called to an unscheduled meeting due to the March banking crisis. The Council considered that new structures are needed that will make it possible to tighten the rules for the activities of hedge funds, cryptocurrency companies and other companies related to the cryptocurrency and financial markets.
The US Treasury supports the Council's proposals for the development and implementation of new structures
The US Treasury supports the Council's proposals for the development and implementation of new structures
According to the US Treasury Secretary, the Council's proposals are extremely important for identifying, assessing and eliminating risks to the country's financial system. New structures can help you be better prepared to manage risks, no matter where they come from.
An interesting fact is that new structures may place cryptocurrency funds and companies under even stricter control of the Fed (US Federal Reserve System).
Let us recall that the crisis in the banking sector was caused by the bankruptcy of two banks that worked closely with cryptocurrency companies. At the same time, regulators emphasized that cryptocurrencies had nothing to do with the crisis of these banks.
In particular, Signature Bank, whose closure caused the most heated debate, was closed not because of the impact of cryptocurrencies, but because of distrust in its management. Recently, NYDFS Superintendent Adrienne Harris said that Signature's crypto clients did not play a disproportionate role in the collapse.
And Silvergate Bank went bankrupt due to its association with FTX, an exchange that also went bankrupt in November 2022.
Regulatory oversight of the US crypto market is growing
Regulatory oversight of the US crypto market is growing
Thus, the cryptocurrency market in the United States continues to come under increasing pressure from regulators. Because of this, exchanges and funds are leaving the United States in search of more favorable operating conditions in other countries. Among them are the UAE, Hong Kong, and so on. If bureaucratic structures continue to grow in the United States, the crypto market in the United States may be completely marginalized.
