The crypto community has slammed the ‘Economic Report of the President’ published on March 20 that called crypto assets “speculative investment vehicles” and debated that crypto can never be an s Sovereign Money like USD.
The report prepared by biassed democrats fabricates misconceptions around the potential of digital assets including cryptocurrency, stablecoins, NFTs, and others.
Surprisingly, nearly 15% of the report is dedicated only to spreading “crypto FUD” that unveils the fear about digital assets prompting the U.S. government, highlighted by Fred Ehrsam, a co-founder of digital asset investment firm Paradigm.
The report said that crypto “failed” because it didn’t do what its supporters said it would, like improve payment systems, make financial services available to more people, and make it easier to transfer value and intellectual property.
“Instead, their innovation has been mostly about creating artificial scarcity in order to support crypto assets’ prices — and many of them have no fundamental value.”
Furthermore, the report states that many participants in the crypto asset firms are not following compliance.
The report claimed that crypto asset disclosures regarding securities are a key area of non-compliance. Its lack of transparency prevents investors from realising that many crypto assets lack fundamental value.
Even stablecoin, which is backed by reserve assets like USD, was also debated in the report. The reports argue that it has failed to play its role as a “fast payment” instrument.
Kristin Smith, CEO of Blockchain Association, called the report “disappointing” and he responded that the growing scrutiny suggests an “increasingly allergic” among some in the government towards the flourishing crypto industry.
Dan Reecer, chief growth officer at Acala Network, has also shown his outrage. He is sceptical about the report as it comes just after Operation Choke Point 2.0 was executed on crypto-friendly banks such as Signature Bank.
Signature Bank’s shutdown is intended to pass the message to the crypto space and curb speculation among its rapidly growing fanbase. However, the NYDFS spokesperson refuted such allegations and said the bank’s shutdown has nothing to do with crypto.
