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Washington’s Clear Message to Cryptocurrency Banking

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Washingtons Clear Message to Cryptocurrency Banking

According to reports, Ryan Selkis, founder of Messari, tweeted that in less than a week, the Crypto banking business had actually been closed. The message from Washington is clear that cryptocurrencies are not welcome in banking. From now on, the encryption industry should fully protect and promote USDC.

Messari founder: The encryption industry should fully protect and promote USDC

Analysis based on this information:


The message delivered by Ryan Selkis, founder of Messari, with regards to the closure of the cryptocurrency banking business in less than a week sends a clear signal to the entire cryptocurrency industry. The message signals the increasing efforts by Washington to discourage the integration of cryptocurrencies into the traditional banking system. The move by Washington is not entirely new as regulators in the US and other developed countries have been tentative towards the integration of the cryptocurrency industry with the banking system. However, the recent move signals that the situation has escalated to a new level, and the regulators are keen to clamp down on businesses that seek to bridge these two industries.

The message does not only signal the regulators’ intent to discourage the integration of cryptocurrencies into the banking sectors, but it also highlights their view towards cryptocurrencies. According to the message, cryptocurrencies are not welcome in banking, and the encryption industry should promote and fully protect USDC. This statement underscores the regulators’ preference for stablecoins like USDC, which are less volatile than other cryptocurrencies. Stablecoins are a type of cryptocurrency that is pegged to an underlying asset, such as the US dollar. Stablecoins offer users crypto-like capabilities such as fast and low-cost transactions, without exposing them to the cryptocurrency markets’ volatility.

The message also indicates that the encryption industry should focus on protecting and promoting USDC, which is a stablecoin created by Circle. USDC has gained traction in recent years, becoming the second-largest stablecoin by market capitalization. USDC’s popularity continues to grow, primarily due to its stability, regulatory compliance, and transparency. The regulators’ preference for USDC over other cryptocurrencies highlights their desire to encourage the use of stablecoins in the traditional banking system. The encouragement of stablecoins’ use will enable banks to leverage the benefits of cryptocurrencies’ speed, low cost, and borderless transactions while avoiding the risks posed by volatile cryptocurrencies like bitcoin.

In conclusion, the message by Ryan Selkis, founder of Messari’s tweet, signals increasing scrutiny by Washington and regulators on cryptocurrency businesses that seek to bridge the cryptocurrency and the traditional banking system. The regulators’ preference for stablecoins like USDC underscores their view towards cryptocurrencies and highlights their desire to encourage their use in the traditional banking system.

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