This week, the crypto world has been buzzing with the news that the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against crypto exchange Binance for allegedunauthorized derivatives trading, aiding US clients to evade legalities, and conducting activites with inadequate anti-money laundering (AML) and know-your-customer (KYC) measures. Despite the news, Bitcoin and Ethereum have shrugged off the news, displaying slight upticks on the back of alternatives such as Stellar (XLM) and XRP's hefty rallies and investor hope. In other news, Texas has moved a bill that might restrict Bitcoin mining in the state while denying tax abatements, while the lead of Bank of England (BoE)'s Central Bank Digital Currency (CBDC) Katie Fortune said that CBDC's can be a “bridging asset” between Traditional Finance (TradFi) and crypto.

These events demonstrate the continuing criminalization of crypto in the US, and the limitation of access to Bitcoin mining activities in some states. A CFTC lawsuit against the world’s largest exchange, and its CEO, is proof of this regulating trend that looks unquenchable. SEC Chairman Gary Gensler's testimony reiterated the agency’s belief that the majority of cryptocurrencies are still unlicensed securities, while BoE's head seemed to be in support of cryptocurrencies, seeing CBDC’s as a bridging asset, a concept that is already being adopted in some other economies.

The crypto community is nuanced in its opinion, for some, such measures may stave off ill-intended activities, others however, feel that such laws may be detrimental to aspects such as decentralization, a feature immutable to Bitcoin's story. Regulatory actions such as this, though expected, are likely to be paradigmatic of the year 2021 and the years to come, with greater clarifications to come with regards to the frameworks of legitimate crypto activities.

Perhaps more importantly, the ecosystem is seemingly not moved by the news, indicative of its becoming more mature and accepted. The continuation of cryptocurrency assets despite such initiatives further demonstrates the strength and resilience of the sector, as it continues to exist and thrive despite misguided efforts otherwise.



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