Sent November 9, 2022, 11:56 amUpdated November 9, 2022 at 12:15 pm
Coincidentally, the mid-term elections in the United States come at the same time as a storm for digital assets: one of the main trading platforms, FTX, is going through an unprecedented crisis. “probably the most important event in the history of cryptocurrencies”, according to Clara Medalie, director of research at analytics firm Kaiko. FTX could still get away with an acquisition by Binance, its competitor. “This will change the structure of the market and create monopoly problems”, adds Clara Medalie. Perhaps one of the new issues that the elected Americans will address, albeit “Cryptocurrencies are not at the top of their priorities”.
This is a political blow all the more severe because “Everyone in Washington knew Samuel Bankman-Fried, a major donor to the Democratic Party”. His downfall permanently tarnishes the reputation of the industry and destroys his lobbying efforts.
Elected officials will continue to legislate on cryptocurrencies
The results of midterm arrived – and still incomplete – draws a very divided Congress, but this should not prevent elected officials from continuing to legislate on digital assets. Because “Recent events have already led them to a bipartisan effort for cryptocurrency legislation”, continues Clara Medalie. The most exemplary is the project on stablecoins (digital assets anchored to a value), which should be adopted at the beginning of 2023. A text built in rapid reaction to the collapse of the Earth ecosystem, earlier this year.
No doubt the FTX shock will fuel upcoming debates in Congress on any new legislation and certainly accelerate others. “After the collapse of the FSO in the spring, and now FTX, the second largest platform in the world, the regulators have all it takes to justify an even more rigid framework, says Alexandre Stachchenko, KPMG’s blockchain director and co-author of the book Easy Bitcoin and Cryptocurrencies (First ed., 2022). But they run the risk, as some American players such as Coinbase already warn, of accentuating the problem they try to avoid, pushing American consumers towards offshore companies. “
Behind the FTX affair, however, he notes some encouraging elements for the sector: “Even if it’s a bad sign, there is still a positive message for bitcoin, for decentralization, He adds. Because the problems all appeared with centralized actors. We must stop the personification and the starification: the interest of bitcoin is precisely that of not being personified. This makes it very durable. “
As for knowing what the influence of the results of the midterm on courses. The FTX event brings too many ” noise “he thinks