After Prince Charles spoke on behalf of the Queen of England at the House of Lords about the government’s legislative goals and the measures it wants to give to members of parliament, the UK is moving forward with the process of regulating stablecoins. Let’s find out more about it from the bitcoin news of today. Learn about bitcoin trading through the bitcoin profit app official site.
During the Queen’s annual address to the British Parliament, one of the most important topics was cryptocurrencies, and it was said that the country’s cryptocurrency business will be regulated by the law in the coming months. In their speech, the ministers talked about 38 ideas that they hope will become laws before the year 2023 starts.
These laws cover a wide range of topics, from justice and safety to education, infrastructure, and health. During the consultation that Her Majesty’s Treasury held last year to figure out how to handle stablecoins and other crypto-assets, the idea was brought up that the UK should regulate stablecoins.
Even if terrible things had happened the week before the Queen’s speech, HM Treasury could still move forward with other plans. This means that there will soon be rules about how to use stablecoins.
The economic secretary of the Treasury, John Glen, said that the British government would give stablecoins one of the most advanced legal frameworks. The chancellor of the Treasury, Rishi Sunak, also said that the government will make sure that the financial services industry in the UK stays on the cutting edge of technology.
The bitcoin markets were in a mess when the official spoke. This happened because TerraUSD’sstablecoin dropped below its $1 peg, which made other cryptocurrencies lose a lot of value.
In the last year, all cryptocurrencies lost $300 billion in value, which was the market’s lowest point. The value of Terra was tied to a second cryptocurrency called LUNA, whose value also went down. Treasury Secretary Janet Yellen has also asked Congress to make rules about stablecoins.
In the meantime, a representative from the UK Treasury made it clear that stablecoins would be regulated when they were used as a way to pay. This piece of legislation will be a part of the Financial Services and Markets Bill. Proponents of stablecoins say that they will usher in a new era of much faster and safer payments.
The UK government has said that there will be a consultation later this year about how to regulate crypto activities like trading BTC and ETH. The government plans to make its own non-fungible coin as part of its plan to become a world leader in the cryptocurrency business.
Stablecoins are what the government cares most about.
Stablecoins are easy to send and keep their value, which worries government officials like Yellen and Gary Gensler, head of the Securities and Exchange Commission (SEC). They worry that stablecoins pose new threats to the economy and financial system. So, there must be rules.
Stablecoins might make it easier and cheaper to buy and sell non-fiat currencies.
They do this by connecting a number of different cryptocurrencies that are kept on different blockchains. Instead of trading from stablecoins to other cryptocurrencies, some exchanges might want to trade from bank accounts with dollars. This gives you a chance to lower or even get rid of any transaction costs.
Many exchanges, like Coinbase, don’t charge any fees to convert U.S. dollars to USD Coin, which can then be used to buy more cryptocurrency assets. This is just one instance.
On the other hand, people are worried that stablecoins could make the US financial system less stable. Joshua White, an associate professor of finance at Vanderbilt University and a former financial economist for the Securities and Exchange Commission, says that this could happen when a stablecoin has a large market capitalization.
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