In today’s bitcoin and cryptocurrency news, read about the price of bitcoin and other cryptocurrencies has plummeted this year after skyrocketing to around $3 trillion in late 2017. (with some yet to call the bitcoin price bottom). Meanwhile, in response to hacking and market instability that resulted in significant losses for investors, the Biden administration has developed an action plan to address issues in the cryptocurrency industry. On the other hand, on September 17, the cryptocurrency market as a whole increased its losses from the previous day, lead by Ethereum, which fell precipitously once the Merge went into effect. Finally, the former power generation plant on Erie Avenue can now be occupied by Canadian bitcoin business Digihost after the PSC gave its approval on Thursday.
After a $2 Trillion Price Drop, Joe Biden Just Issued a Stern Warning to Bitcoin and Other Cryptocurrencies
The bitcoin price has dropped below $20,000 per bitcoin, from around $70,000, as the market grapples with the Federal Reserve’s interest rate hikes, which could increase bitcoin volatility.
Now, the Biden administration has urged U.S. government agencies to double down on bitcoin and crypto enforcement, putting the $1 trillion industry on a collision path with regulators after the White House hinted bitcoin could be banned.
White House papers pushed the SEC and CFTC to regulate cryptocurrencies.
Digital assets offer hazards for consumers, investors, and businesses, the Biden administration claimed, citing “frequent operational failures, market manipulation, frauds, thefts, and scams.”
According to the Federal Trade Commission, at least $1 billion has been lost to crypto fraud since 2021. The collapse of major cryptocurrency luna and its connected stablecoin terraUSD has added to investor anxieties.
Treasury Secretary Janet Yellen remarked, “The studies clearly underscore the significant obstacles and hazards from digital assets utilized for financial services.” Digital assets and future technology could offer enormous opportunities if these risks are avoided.
Yellen warned lack of regulation might repeat “painful” lessons.
“Innovation is a hallmark of a healthy financial system and economy, but without sufficient supervision, it may cause severe disruptions and harm to the financial system and individuals,” Yellen said, according to Reuters.
Regulators have recently stepped up their surveillance of the bitcoin and crypto sector, with the SEC labelling some cryptocurrencies securities and pursuing a long-running dispute with Ripple.
National security advisor Jake Sullivan and National Economic Council director Brian Deese stated in a statement, “The reports encourage authorities to ramp up investigations into digital asset market wrongdoing, redouble their enforcement efforts, and increase interagency coordination.”
White House Announces New Action Plan to Address Issues With Crypto Market
Original Source: White House Unveils New Action Plan To Tackle Crypto Market Problems
The Biden administration presented its first cryptocurrency regulatory framework in the US, explaining how the banking system should alter to allow international transactions and combat crypto crimes.
The White House report “The Future of Money and Payments—Report Pursuant to Section 4(b) of Executive Order 14067”, September 2022, highlighted the issue of transparency and the volatile nature of cryptocurrencies and said the Federal Reserve’s research on a Central Bank Digital Currency (CBDC) could achieve various goals such as safeguarding national security, advancing financial inclusion, and promoting economic growth.
The legal framework compiles nine papers submitted to the White House in March. Since the order, the crypto market value has decreased and corporations like Voyager, Celsius, Three Arrow Capital, and Terraform Labs have crashed.
Since November 2021, Bitcoin’s market cap has fallen to $2 trillion. Some businesses grew quickly. BlockFi’s March investment round valued it at $3 billion. It topped this year’s Inc. 5000 list of fastest-growing crypto businesses. White House crypto guidelines could aid the business by deterring illicit activity.
The audit said crypto businesses are misleading investors by promising large profits. “One study found that about a quarter of digital coin offerings had disclosure concerns, such as plagiarized documentation or fraudulent returns guarantees. The survey noted digital asset market fraud, frauds, and theft are rising. According to the FBI, crypto fraud losses were 600% higher in 2021 than in 2020.
Minimum balance requirements keep many people out of the mainstream financial system. The White House stated it wants to promote the development of payment providers by employing new technology to improve access to financial services.
White House’s major priority is stablecoins, whose value is tethered to a fiat currency or a commodity. Without financial rules, it might destabilize the system, the research said.
TerraUSD, a stablecoin tied to the US Dollar, lost $600 million in a market crisis in May, causing the bankruptcy of multiple crypto hedge firms.
The law tries to predict and prevent such threats. Treasury will engage with other agencies to detect, evaluate, and assess digital asset market concerns. It will also identify dangers with US allies, the article added.
Cybercriminals use crypto’s anonymity and lack of financial intermediaries, according to the paper. “Digital assets have encouraged the rise of ransomware cybercriminals, drugs sales and money laundering for drug-trafficking groups, and the backing of rogue governments,” it stated.
The Biden administration wants to amend the US Bank Secrecy Act (BSA), anti-tip-off statutes, and unlicensed money transmission rules to apply to crypto exchanges and NFT marketplaces.
Ethereum Falls 16.5% in a Week; Bitcoin Remains Below $20,000
The global cryptocurrency market continued its previous day’s losses on September 17, lead by Ethereum, which fell after the Merge. Friday’s crypto markets were already reeling from shocking US inflation statistics when The Merge hit. Market cap was $961.89 billion when this story was written, down 0.5% in 24 hours.
The US CPI inflation rate for August was the main market mover last week. The 8.3% rate was higher than expected, and core inflation surpassed projections at 6.3%. This upside shock tanked prices across asset classes, including US equities, Gold, and Crypto, said CoinSwitch’s Parth Chaturvedi.
Crypto markets recovered better than other risky assets as ETH Merge took center stage. Ethereum migrated to Proof of Stake, decreasing its energy consumption by >99%. “ETH supply has been halved three times and is currently deflationary,” he said.
Bitcoin rose 0.8% today but stayed below $20,000. CoinMarketCap statistics showed Bitcoin’s price was $19,870.25 at the time of publication. Bitcoin dropped 6.85% last week.
The crypto market has been falling this week after U.S. inflation statistics surprised investors by being higher than predicted. Bitcoin, Ethereum, and most cryptocurrencies soared after the data release. Bitcoin topped $22,000 on Monday but dropped to $19,000 midweek. Edul Patel said BTC’s next support level is US$19,500 if it falls below its current level.
Ether fell nearly 9% on Friday and Saturday after the Merge. Today’s Ethereum price was $1,432.66, down 2.16 percent from yesterday. Ether fell 16.52 percent last week.
Ethereum fell below US$1,500 despite the successful Merge from PoW to PoS. Merge may not immediately affect ETH’s price behavior because market participants need time to process key occurrences. If ETH falls below its present level, it may retest $1,300, Patel warned.
BTC outpaced ETH when Fidelity revealed plans to provide BTC to regular traders. As the Vasil hard fork near, the focus is on ADA,” said Chaturvedi.
Fortistar Power Plant Will Be Replaced by a Digihost Crypto Mining Operation
Original Source: Digihost crypto mining facility to take over Fortistar power plant
The New York State Public Service Commission approved the transfer of a power plant to the business that operates a bitcoin mining facility in North Tonawanda.
Digihost, a Canadian cryptocurrency firm, will take over the abandoned Fortistar facility on Erie Avenue.
Digihost drew noise and environmental issues when it began operations and testing in 2022. The commission acknowledged these concerns in their judgement, but said they only oversaw potential consequences on consumer electricity rates, which they found none.
The verdict meant something different for nearby neighbors.
Karen Hance feels unheard and unimportant.
Hance resides across from Digihost on Sherwood Avenue. She’s part of a group of neighbors who’ve fought the project since it was conceived, citing environmental and noise issues.
Hance: “They’ve reduced noise.”
“Being so close to the facility, I still hear it.” She’s 800 feet from home.
Digihost agreed to build acoustic walls to reduce noise after community opposition and concealment. Thursday night, the panels were incomplete.
Deborah Gondek opposed the proposal early on of concerns about energy and water use for other mining facilities in the state. Her efforts, including legal action, continue, but this week’s verdict was disappointing.
Most towns don’t have zoning regulations or noise ordinances that address bitcoin mining, so Gondek relied on the PSC.
Chris Murawski, executive director of the Clean Air Coalition of Western New York, said, “Once again, Western New Yorkers suffer from an unelected body’s judgment.””
Murawski and his group advocate for environmental and other oversight of crypto mining at the municipal and state levels.
The New York State Legislature passed a crypto moratorium, but Governor Hochul hasn’t signed it. When 2 On Your Side approached the governor’s office about the bill, we were shown his words from the New York State Fair three weeks earlier.
“One of 1,007 invoices on my desk.” We’ve had a lot to do, so I’ll analyze pro and con positions in the coming several weeks or months, said Governor Hochul.
Digihost needs a Title V Air Permit from the NYS Department of Environmental Conservation to function, Gondek and Murawski stated.
Summary of today’s Bitcoin and Cryptocurrency news
To put it simply, National security advisor Jake Sullivan and National Economic Council director Brian Deese stated in a statement, “The reports encourage authorities to ramp up investigations into digital asset market wrongdoing, redouble their enforcement efforts, and increase interagency coordination.”
In addition, the Biden administration wants to amend the US Bank Secrecy Act (BSA), anti-tip-off statutes, and unlicensed money transmission rules to apply to crypto exchanges and NFT marketplaces.
Meanwhile, BTC outpaced ETH when Fidelity revealed plans to provide BTC to regular traders. As the Vasil hard fork near, the focus is on ADA,” said Chaturvedi.
Finally, while the power plant has been given to Digihost, as Gondek and Murawski pointed out, the business still need a Title V Air Permit that has been issued by the NYS Department of Environmental Conservation in order to run.