Crypto order is coming as the European Parliament and Washington DC lawmakers pass a string of regulations governing the two trillion USD cryptocurrency market.
In the European Union, the Markets in Crypto Assets, or MiCA bill, will be the framework in the world’s largest trading bloc, which will define the crypto order on the continent.
European Parliament Committee on Economics and Monetary Affairs member Stefan Berger said in a recent tweet that the committee will vote on the MiCA bill on March 14 following the submission of a final draft of the bill. The good news for crypto investors is that there is nothing in the EU’s MiCA bill that is an existential threat to the two trillion US dollar cryptocurrency market.
“In the European Union, the Markets in Crypto Assets, or MiCA bill, will be the framework in the world’s largest trading bloc, which will define the crypto order on the continent”
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Berger has been appointed EU’s spokesperson on the crypto order bill.
Here is the good bit; Berger said the legislation will no longer include text that some had interpreted as a possible ban on proof-of-work crypto mining.
“With MiCA, the EU can set global standards,” said Berger. So we can take that to the bank that cryptocurrencies will be an integral part of the system, under a crypto order, which no doubt will rattle the libertarians amongst us.
In short, the EU’s Crypto order MiCA bill is about regulating and not banning cryptocurrencies
“Therefore, all those involved are now asked to support the submitted draft & to vote for MiCA. Strong support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly financial sector,” said EU’s spokesperson for the crypto order bill.
So, the EU’s Crypto order MiCA bill is likely to be interpreted as positive for investors because it is intended to provide a framework for legal certainty and reliable supervisory structures for crypto assets.
“strong support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly financial sector,”
Meanwhile, the US is sketching out a framework for a crypto order bill
So US Senator Warren is drafting a bill to ensure that crypto can’t be used to evade sanctions. One of the provisions would make it easier to verify customer identities and transfers to private wallets by enforcing detailed record keeping and reporting, according to NBC News.
“I’ll be speaking soon with @Mitchellreports on @MSNBC
about my new bill to ensure crypto isn’t used by Putin and his cronies to undermine our economic sanctions. Hope you’ll tune in!”, tweeted Warren on March 8.
“the Russian Ukrainian war has ushered in a raft of crypto order regulations designed to enable technology innovation without undermining and jeopardizing central bank currency” – Wealth Training Company
The crypto order bill is more likely to keep the banks happy, bearing in mind cryptocurrencies would already have little impact on undermining Western sanctions
US Intelligence Chief recently said in a public hearing that it would be challenging for Russia to undermine western sanctions using cryptocurrency.
The United States, United Kingdom, European Union, and Canada announced new sanctions on March 8 which have targeted Russia’s central bank and national wealth fund. The US Treasury Department said that it was limiting Russian President Vladimir Putin’s ability to use the country’s $630bn in foreign reserves.
So the Russian Ukrainian war has ushered in a raft of crypto order regulations designed to enable technology innovation without undermining and jeopardizing central bank currency. As they say, never let a good crisis go to waste.
Overall, we believe the crypto order is positive for cryptocurrencies facilitating web 3.0, cryptos with utility that do not compete with central bank currency.