Unsurprisingly, Senator Cynthia Lummis, a Wyoming Republican who is known as one of the most loyal crypto advocates in U.S. law, revealed a fairly large Bitcoin purchase she made in early summer. It is strange to observe the congruence between a politician’s longstanding stance on an issue and the corresponding monetary behavior (Lummis has been selling BTC since 2013). Such consistency will be a standard in blockchain-based governance systems, where the interests of the individual are balanced with the interests of the entire community and all information can be in the public interest.
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Reducing the debt ceiling
Last week, the week-long saga of the federal government’s debt ceiling was finally resolved, if only temporarily, and it is now certain that the Treasury Department has been able to meet its financial obligations at least until early December, the unthinkable prospect of default seems unthinkable of the country is less unimaginative than usual, as party members see that the Republicans in the Senate have taken a position against what they consider to be irresponsible spending by the Democrats.
While opinions differ on the short-term impact of debt ceiling uncertainty on the crypto market, there is near consensus on the view that sovereign debt policy will undermine confidence in the dollar in the long run.
Let the guard dogs out
It turns out that Coinbase isn’t the only major player in the crypto industry to be harassed by the Securities and Exchange Commission. Circle, the company behind USD Coin, announced that it had received a subpoena from the agency in July and announced its readiness to “cooperate fully”.
In the area of enforcement, a big announcement comes from Assistant Attorney General Lisa Monaco, who recently played a leading role in the DOJ’s efforts to combat ransomware and cyberattacks. At the Aspen Institute Cyber Summit, Monaco said the Department of Justice established a National Cryptocurrency Enforcement Group to improve the government’s ability to disrupt financial networks that facilitate cyber criminals.
Over 100 CBDCs are coming soon
Kristalina Georgieva, Executive Director of the International Monetary Fund, spoke about digital currencies last week. These are expected to be central bank digital currencies that fall within the regulatory framework. More interestingly, Georgieva shared some previously undisclosed figures on how many countries are at any given stage of the discovery or development of CBDC.