After the Bitcoin price has achieved $ 120,000 last week, the cryptography market has taken a new stage. The legislation passing through the American Congress opening up new avenues for cryptocurrencies and exchanges, the market capitalization of the crypto has reached 4 billions of dollars while investors are preparing to pay billions of dollars on the market.
In less than three years, the market value of the crypto has extended five times. In December 2022, in the wake of the collapse of the Sam Bankman Friedx Crypto Exchange, the Bitcoin price fell to $ 16,000 and the market capitalization was $ 800 billion.
Since then, Crypto has increased regularly, accelerating quickly after the coming to power of Trump and his commitment to crypto speculators, of which he is, ratifying billions of dollars, to make the United States the world capital of cryptography.
Three laws were presented. The so-called Genius Act, who adopted both the Chamber and the Senate, facilitates the creation of stablecoins which help the entry of large financial houses, as well as non-financial companies, in the world of cryptography.
The Clarity Act, which has adopted the Chamber and is now awaiting approval in the Senate, is perhaps even more significant because it removes the regulations of the SECURITIES CRYPTOGRAPHY AND EXCHANGE Commission and gives it to the Futures Futures Trading Commission, which is considered to be more “friendly”.
In comments at New York TimesKara Calvert, a senior manager of Major Crypto Exchange Coinbase, said that “was absolutely the most important thing we have pushed.”
The third legislation is the prohibition of the federal reserve creating a digital currency, considered to be less important because the Fed has not announced any plan to do so.
The last legislation was characterized by the defenders of the crypto as “one of the most important measures” towards the traditional adoption of the crypto. The Genius Act opens the way to banks of Wall Street, fund managers and large companies to create their own stablecoins as a way to enter the world of cryptography.
The stablecoins are different from the thousands of pieces that have been created, whose Bitcoin is the most important.
They are presented as ensuring stability because they are supposed to support one for underlying assets, mainly US dollars or cash obligations. The heads of Bank of America, Citigroup and Jpmorgan Chase said they intended to create their own stablecoins, and other non -financial companies, such as Walmart and Amazon, should follow.
The expanded development of stablecoins, which the last legislation facilitates, means that the regular financial system, including the US treasure market, is more intimately linked to the Ponzi regime which constitutes the cryptographic market. None of the cryptographic coins, including Bitcoin, has intrinsic value – there is no real underlying asset. Its market value only increases insofar as more money circulates, and this is the objective of the new legislation.
By forming what has been described as the “connective tissue” between the banking and financial system and the Ponzi cryptography market, the Stablecoins add a new source of financial instability, despite their alleged support for one with the dollar. Commercial paper was supported in the same way, but played a role in the 2008 crisis, and there are fears that stablecoins could be a source of instability if they “break the male”.
As Financial time The columnist (FT) Katie Martin noted in an article published in June: “Until now, what has happened in Crypto has remained in Crypto.”
But the situation has changed and “we now quickly reach the point where the cryptographic ecosystem presents risks for traditional markets.”
If, for any reason, a stablecoin was forced to sell its assets to respond to buyouts or because it had to comply, it would have ramifications for the entire financial system, in particular the US Treasury market in the short term. It is now estimated that Stablecoin operators hold more short -term American debt titles than major foreign investors, such as China.
It is not a question of conjecture. In May 2022, the collapse of Terrausd stablecoin, promoted by fears of the quality of its support, led to the effusion of $ 40 billion in market value.
He had no great flow effects at that time. But the cryptography market has expanded several orders of magnitude since then and has become much more linked to the wider financial system.
No one really knows the extent of this connection due to the lack of data. But a survey by Ey Parthenon concluded that 73% of institutional investors had an exposure to the crypto and that 85% of them had increased their assets in 2024.
The Bank for International Settlements, the organization of umbrellas for world central banks, has commented a lot about the issue of stables and cryptographic markets in its annual report published at the end of last month, pointing to potential sources of instability.
One of the main questions she raised was what she called “celibacy of money” in a world where companies and financial companies emit their own stablecoins. In the current system, the money issued by central banks is “accepted by everyone without hesitation,” said the bis.
But questions are raised where there are several stablecoins. The “celibacy of money” cannot be guaranteed, noted the bis, because according to the way in which the strength of its support for assets is evaluated, a stablecoin can be exchanged or a bonus for another.
On the issue of cryptographic coins, he said that despite the assertions of their supporters that they redefine money “they do not look like a stable monetary instrument, but rather a speculative asset”.
The stablecoins were designed as a “gateway to the cryptography ecosystem” and if they continue to grow “they could pose risks of financial stability, including the risk of the tail of safe asset fire”.
Supporters of the Crypto system constantly claim that it is a “democratization” of finance and offers ordinary people to participate in the advantages of the world of finance, ignoring the fact that, according to the FBI, the Americans lost $ 9 billion for cryptographic fraud last year, an increase of 66% compared to the previous year.
Like Hilary J. Allen, professor of law at American university, the Washington College of Law declared it in a submission to the Committee of the Chamber of Financial Services on June 24: “When about half of all Americans (some surveys say more) live the pay check at the pair, the problem is not a lack of investment opportunities but a lack of money to invest in the first place.”
Cryptographic active ingredients were “similar to Ponzi” because their value was not based on real assets but depended “fully whether another buyer can be found for them”.
She said that if tokenized assets (whose stablecoins are one) take off, then “it is undeniable that it will lead to the creation of more financial active people who can be exchanged with speculation, and which can be used as a guarantee for leverage transactions.
But the creation of such bubbles is the objective of cryptography legislation, promoted by the Trump administration but which is signaled by the Democrats. The strongest criticism, if it can be called this, came from the Senator of Massachusetts, Elizabeth Warren.
In her declaration to a senatorial committee, she expressed her concern that “what my republican colleagues are targeting is another document in the industry that gives the crypto lobby exactly her list of wishes” because she said she was “looking forward to working with my colleagues to do so – the right way”.
There is no good way – the staging of the crypto in the dominant financial current emanates from rot and decomposition at the heart of the American capitalist system – the accumulation of wealth by increasingly parasitic and criminal means.
Warren, who described himself as “bone capitalist”, carried out his assigned function in this system by trying to create a smoke screen for its operations with the assertion that it can be regulated in a way.
But as she knows very well, there is no prospect of this. As she explained herself, the Clarity Act will allow tokenise companies their assets to escape regulations.
“Under the House bill, a listed company like Meta or Tesla could simply decide to put its stock on the blockchain and POOF! This would escape all the SEC regulations. “
Meanwhile, Trump is looking for more ways to meet the insatiable requirements of finance, all of his own nest.
According to an FT report last week, Trump is preparing to open the retirement system of US dollars for cryptographic investments. He said Trump was trying to make a decree “which would open 401K plans to alternative investments beyond traditional shares and obligations”.
These investments “would manage a wide range of asset classes, from digital assets to metals and funds on business control, private loans and infrastructure transactions,” the newspaper had been informed of the plan.
The White House said that nothing had yet been decided and that no decision was official unless it comes from Trump itself.
Whether this plan or another is adopted, the essential logic is clear.
The crypto market is a Ponzi regime which requires the injection of increasingly high amounts to push the market value increasingly, allowing those of the apex of the financial system to expropriate the quantities of ever -increasing wealth before the house of cards collapsed with the consequences borne by the mass of the population – larger larger scale than the 2008 crisis.
Just as Epstein’s growing scandal expose the lifestyles and the customs of ultra rich, revealing that ruling classes are corrupt cancer on the political body which must be deleted, so that their promotion of the crypto reveals the need to put an end to the profit system and its ever stronger descent in parasitism, fraud and crime, which is their economic foundation.
