The Rush To Regulate Crypto

Here are some of the latest news items concerning government and central bank stances on cryptocurrencies. Each item is followed by my comments…

…..June 18, 2025 (Reuters) – South Korea’s central bank governor said on Wednesday he was not against issuing won-denominated stablecoins but had concerns about managing capital flows. At a press conference in Seoul, Rhee Chang-yong said “Issuing won-based stablecoin could make it easier to exchange them with dollar stablecoin rather than working to reduce use of dollar stablecoin. That in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex,”

Chang-yong is quite clear that potential “demand for dollar stablecoin and (would) make it difficult for us to manage forex,”

My comments… Who cares? Should adoption and use of cryptocurrencies be dependent on any government or central bank’s ability “to manage foreign exchange“? If cryptocurrencies provide a possible altrernative to fiat currencies, then, complicating things by adding another layer of regulation and increased market intervention doesn’t benefit anyone.

…..Febuary 11, 2025 (The Times) The governor of the Bank of England has downplayed the idea of launching a central bank digital currency, warning that there is still no “must-have” reason for developing the technology.

Speaking to an audience at Chicago Booth Business School in London, Andrew Bailey said there needed to be a case for providing benefits that existing commercial alternatives could not.

My comments… Bailey is correct. There is no “must-have” reason for developing the technology FROM THE PERSPECTIVE OF THE BANK OF ENGLAND.  Anyone who wants privacy in financial transactions and an alternative to ongoing monetary debasement and regulation would disagree.

…..June 17, 2025 (NBC News) The United States Senate passed a landmark cryptocurrency bill that would establish the first regulatory framework for issuers of stablecoins. Sen. Bill Hagerty, R-Tenn., author of the GENIUS Act, said in a floor speech “With this bill, the United States is one step closer to becoming the global leader in crypto. This bill will cement U.S. dollar dominance, it will protect customers, it will drive demand for U.S. treasuries.” 

The article pointed out that Washington continues to wrestle with how best to regulate the fast-growing cryptocurrency industry. Just two Republicans — Rand Paul of Kentucky and Josh Hawley of Missouri — voted against it.

My comments… How does “becoming a global leader in crypto” reestablish U.S. dollar dominance? If stablecoins are tied to the dollar, then what is the point? If approved by the House, the bill is exactly as stated above: “the first regulatory framework for issuers of stablecoins”. Thumbs up to Senators Paul and Hawley!

CONCLUSION 

The global trend in cryptocurrency regulation should be seen for what it is – a continuation of governmental efforts to control and regulate every aspect of money and finance.

Any positive benefits derived from the growth and use of cryptocurrencies are minimized and negated when government gets involved. The risk to high-flying Bitcoin in terms of its price and popularity is greater than other cryptocurrencies because it is a big ($2T) target.

Two trillion dollars is a lot of money currenly flying under the radar. Probably not for long, though. (also see Will Cryptocurrencies Become Fiat Currencies?)

Kelsey Williams is the author of two books: INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT and ALL HAIL THE FED

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