- Federal Reserve Vice Chair for Supervision Michael Barr reiterated the importance of regulation of stablecoins and cryptocurrencies on Friday.
- Barr stated that while stablecoin innovation should happen, it should be allowed within "really clear guardrails."
- He also stated that the banks are mostly safe from any cryptocurrency risk thanks to their cautious approach.
Bitcoin whales' consistent accumulation since the beginning of 2023 has resulted in addresses holding more than 1,000 BTC, accruing a total of 7.66 million BTC.
The Federal Reserve has been rather silent regarding any regulatory update for the cryptocurrency market. The rising concerns owing to this issue have led to the Vice Chairman for Supervision, Michael Barr, making certain hostile statements regarding the crypto market.
Fed Chair for Supervision says this about crypto
Fed Chair for Supervision Michael Barr provided his opinion regarding stablecoins and the impact of the crypto market on financial markets. Barr stated that stablecoins and private money, including cryptocurrencies such as Bitcoin and Ethereum, have historically proven to be "extremely explosive" if not placed under regulation.
He went on to discuss whether or not stablecoins should be a crucial part of the growing adoption of blockchain and associated assets. He stated that the stablecoin innovation should be allowed to happen but only within "really, really clear guardrails."
Lastly, talking about the impact of the crypto market's volatility and recent crashes on the traditional markets, Barr stated that the banking system has not been deeply exposed to cryptocurrency risks. This is because most banks are taking a careful and cautious approach when it comes to these digital assets.
Thus, even though there is no clear statement from the Federal Reserve on what the future of cryptocurrency regulation is, the need for it is iterated every now and then.
The crypto investors, however, are mostly not bothered as they continue to keep up the optimism of a rally.
Bitcoin whales remain high on hopium
Despite the ups and downs noted by Bitcoin price in the past 11 months, BTC whales have been constantly amassing the cryptocurrency as the market nears the next halving. By April 2024, the rewards for BTC mining would be halved from 6.25 BTC to 3.125 BTC, which is expected to be a highly bullish scenario.
Furthermore, the highly awaited approval of spot Bitcoin ETFs is also expected to take place in January of next year. The anticipation has also proved to be a bullish trigger for BTC in the past month.
Whales intend to capitalize on this opportunity, which has resulted in the addresses holding more than 1,000 BTC consistently accumulating for the past 11 months. Year to date, these addresses have accrued more than 120,000 BTC worth over $4.32 billion, bringing their total holdings to 7.66 million BTC.
Bitcoin whale holdings
Thus, as Bitcoin price rallies, these investors could see significant profits on their accumulation.
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