The End of Crypto As We Know It: US Government’s Coordinated Efforts to Shut Down the Industry

The US government has been increasing its regulatory efforts against the cryptocurrency industry in recent months. With the latest news updates, it appears that the US government is on its largest offensive yet on crypto. These updates show a clear trend of increased government scrutiny and regulation on the industry.

Here is a timeline of the latest news updates, in chronological order, that demonstrate the government’s efforts to regulate the cryptocurrency industry:

• On March 8 2023, the Federal Reserve Chair, Jerome Powell, announced that the US would soon have real-time payments in the country to replace digital currencies.
• On March 8 2023, Silvergate Capital announced it would shut down its operations and liquidate the bank.
• On March 9 2023, the New York Attorney General sued Kucoin, a cryptocurrency exchange, for allegedly operating in the state without proper licenses.
• On March 9 2023, the same Attorney General declared that Ethereum was a security in the Kucoin lawsuit.
• On March 9 2023, President Biden proposed a 30% tax on all electricity used to mine cryptocurrencies.
• On March 10 2023, the US government filed an appeal to block Binance US from acquiring bankrupt crypto lender Voyager Digital’s assets for $1 billion.
• On March 10 2023, Silicon Valley Bank was shut down by California regulators.
• Circle, a major player in the cryptocurrency industry, confirmed that it held an undisclosed amount of cash in Silicon Valley Bank.
• ROKU disclosed that 26% of its cash was in now-collapsed Silicon Valley Bank.
• BlockFi, a popular cryptocurrency bank, had $227 million in now-collapsed Silicon Valley Bank.
• Nearly 50% of all venture capital-backed startups in the US had exposure to Silicon Valley Bank.
• On March 10 2023, Circle confirmed that $3.3 billion of the ~$40 billion USDC reserves were in the collapsed Silicon Valley Bank.
• On March 10 2023, the crypto stablecoins USDC, DAI, and USDD were all trading under $0.95.
• Also on March 10 2023, Binance CEO Changpeng Zhao stated that it “feels like there is a coordinated effort to shutdown crypto-friendly banks.”

These updates show that the US government is taking an increasingly aggressive approach towards the cryptocurrency industry, with a particular focus on regulatory oversight and scrutiny. The latest updates demonstrate that the government is willing to take action against cryptocurrency exchanges and other industry players that operate outside of regulatory frameworks.

The Binance CEO’s opinion that there is a coordinated effort to shut down crypto-friendly banks appears to be supported by the latest news updates. The shutdown of Silicon Valley Bank and the exposure of major players in the industry to its collapse show that the government is targeting not only exchanges but also the financial infrastructure that supports the industry.

In conclusion, the US government’s regulatory efforts against the cryptocurrency industry are intensifying, and it is likely that more regulations and enforcement actions will follow in the coming months. Industry players will need to stay abreast of the latest developments and ensure compliance with regulatory frameworks to avoid falling afoul of the government’s increasing oversight.