Posted 1 month ago | by Catoshi Nakamoto
Treasury Secretary Janet Yellen paves the road for crypto regulation, the thermometer drops for Celsius and the merge to ETH 2.0 takes a bit longer than expected. My name is Ben. This is your nightly crypto news wrap-up.
For the past several years, Janet “Felon” Yellin has received more than her fair share of flack from the talking heads of the crypto industry, myself included. She got roasted time and time again because she was the living embodiment of everything we don’t want to see happen in this space. The relationship between Yellen and Crypto has been a rocky one to say the least. In October of 2018, she flat out said, “I will just say outright, I am not a fan.” Although she’s still not exactly in my myspace top 8, it’s clear that Yellen has lightened up on crypto now that she knows it’s here to stay. Time breeds familiarity and familiarity breeds understanding. In her recent speech at the American University in Washington D.C, I was surprised to hear her say that decentralization is actually a STRENGTH of the blockchain industry. Never thought I’d hear her say that in a MILLION years. Some of the main points she drove home are the regulations should be “tech neutral”, a U.S. CBDC will most likely take years to develop, and the priority of crypto regulation should be protecting the users from scams and fraudulent activity. In a recent tweet, Yellen stated, “Growth in digital services has opened a new world of possibilities and risks, and policy around digital assets must evolve to meet these new opportunities.” It’s ok to be a little bit optimistic when she says things like that, but I’m still wary about how far these regulation shenanigans will go when I see stories like this one about Celsius,
Celsiu; if you don’t know, pays rewards in the form of crypto to your average investor just for holding your crypto with them instead of their competitors. In order to comply with current regulations, Celsius will no longer pay these rewards out unless you’re an accredited U.S investor. You will still receive rewards if you already have your assets on Celsius, but you will not receive rewards for anything you buy after April 15th. If you’re familiar with BlockFi, this story probably doesn’t come as much as a surprise, and at least this didn’t cost Celsius $100 million dollars. My problem with this is that this only affects U.S investors, and the rest of the world goes on without us. They’re taking away opportunities for average Joe crypto to earn passive income, not to mention ruining Celsius’ business model. The reason this is happening is because these high yield opportunities, like those offered on blockfi and Celsius, are a threat to the legacy system. It makes sense, why would anyone use banks or buy bonds when you can get 7-10% on stablecoins? Once again, classic case of watch what they do, not what they say. Yellen gives a somewhat optimistic speech saying, “policies around digital assets must evolve to meet these new opportunities.” Meanwhile, Celsius is getting kneecapped before the groundwork is even established. It’s obvious that Gary Gensler is making the rules up as they go along while he gets embarrassed by Ripple.
In other news, as anticipation builds for the merge to Ethereum 2.0, unfortunately, the timeline has been pushed back to Q3 this year. The original hope was that the merge would take place in June, but this process is not as simple as downloading Minecraft on your laptop. ETH developer Tim Beiko recently tweeted, “It won’t be June, but likely a few months after. No firm date yet, but we’re definitely in the final chapter of PoW on Ethereum.” I’m sure the miners are more than okay with having an extra couple months to profit on some gas fees, but Beiko “strongly suggests to not invest in more mining equipment at this point.” Although this is a small hiccup for Ethereum, it’s nothing to worry about in the long haul. Greatness requires patience. Comment below with your Ethereum price predictions and don’t forget to subscribe to the channel.
That’s all I got. Be blessed. BitBoy out.