Crypto Regulations Advance Despite Global Crisis, Cash Shortages, Bank Closures

In this roundup, we cover crypto regulatory developments amid the global crisis effected by the coronavirus outbreak, bank closures, interest rate cuts, and plunging stock markets. Through it all, governments worldwide are still focusing on cryptocurrency regulation, including the U.S., South Korea, India, and Russia.

Also read: Bitcoin Legal in India — Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency

US: Proposal to Issue Two $1 Trillion Coins, Covid-19 Responses, State Cryptocurrency Bills

Governments worldwide are in a panic mode as the number of covid-19 cases has skyrocketed, bringing many industries to a standstill. In the U.S., the Federal Reserve has slashed interest rates to 0% and launched unlimited QE, but the moves have failed to impress the markets so far. Some financial institutions, facing cash shortages, are imposing withdrawal limits, which threatens the risk of a bank run.

An attempt to solve the economic problem was proposed by U.S. Rep. Rashida Tlaib, who wants the U.S. Treasury to mint two trillion-dollar platinum coins. Her new “Automatic Boost Act” claims it will not add any debt to anyone thanks to the ideas behind Modern Monetary Theory. Some supporters of this theory believe that it can attract crypto proponents, as explained.

Several U.S. states have independently pushed ahead with their own crypto bills. The state of Illinois has advanced a bill to allow its Treasury to seize cryptocurrencies left unclaimed at custodians after five years. The state of Hawaii is looking for cryptocurrency companies to join its first regulatory sandbox for digital currency, launched on March 17. Applicants can apply until May 1.

Regulatory Roundup: Crypto Regulations Advance Despite Global Crisis, Cash Shortages, Bank Closures
U.S. President Donald Trump is contemplating grounding passenger flights and halting stock trading. While a massive stimulus package has failed to gain the Senate’s approval, an analyst has predicted that the U.S. housing market will…

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