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Nov 09,2022

U.S. government could block Binance-FTX deal on national security grounds - Cowen

Although investors are still digesting the damage from yesterday events in the cryptocurrency market, some analysts warn that the drama will not end anytime soon. Cowen analysts said investors should watch the situation "carefully" as the US government could step in and block the deal.

"We are concerned in Washington that the Committee on Foreign Investment in the United States [CFIUS] may want to investigate it for national security concerns and its implications for the United States. different from FTX," the researchers said in a. a customer. say.

Analysts believe that this drama continues to undermine the entire cryptocurrency market through the US legal system. Congress may hold more hearings next year focusing on whether the global crypto revolution threatens financial stability in the United States.

"It does not matter if it is a global change. It makes the news that the crypto industry takes too much risk without any care," said the researchers.

The biggest winner may be the United States Securities and Exchange Commission (SEC), as its chairman, Gary Gensler, advocated for stronger crypto regulations. It is hard for the SEC to approve Bitcoin ETF spots.

"We expect him to refer to the current FTX issue to further prove his point. This means treating many tokens as securities and forcing trading platforms to register as exchanges."

"We already doubt that Congress can pass comprehensive crypto legislation next year. This controversy changes our thinking. We believe it is now difficult to pass bills like Lummis/Gillibrand. Still, it could pave the way for bills that take a more aggressive approach to regulation," Cowen analysts concluded.

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