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Bitcoin doesn't seem to be in a direct thread, but if they go after stablecoins (to kill the competition and make a room for CBDC) the entire market will likely get hit.
Bitcoin doesn't seem to be in a direct thread, but if they go after stablecoins (to kill the competition and make a room for CBDC) the entire market will likely get hit.
This is something I'm quite worried about because if the government feels that they have done all kinds of ways to discredit cryptocurrency and it doesn't work, they will turn to manipulating the crypto market, whether it's by going after stablecoin providers or making negative news which it will have a negative impact on the crypto price. The point is how the government makes the crypto market a volatile market, untrusted and makes many people not interested in investing in this market.
CBDC is coming. Although there are officials trying to stop it, it's going to roll as planned and SEC sending messages like this one is just one example of how they are going to make CBDC reliable money while crypto is not. They are excluding BTC so Bitcoin is good.
On the other side of the fence, dollarization is happening in every corner of the world and it's not picked up by the media so there is something big that is coming and stablecoin might really be broken as well.
Some of the stable coin providers backed their stable coins with long-term treasury bonds, but isn't that what ultimately led to some banks to collapse as well now because those bonds lose in value as interest rates rise and when liquidity is needed, they need to sell it at a loss? Essentially, these exchanges or organizations offering those stable coins are making the same mistakes as banks. Their balance sheets must be faulty as well and carry assets that need to be devalued, but then their promise that every stable coin dollar is sufficiently backed doesn't hold true anymore.
