Although 2019 is the year when crypto space witnessed unprecedented numbers of regulations, it appears the epidemic Coronavirus bailout is now crippling all those efforts.
During the year 2019, crackdowns on the crypto industry, statements from central bank governors, G20 finance ministers, and regulators were recorded. However, now as the world is in the grip of COVID-19 scare, the authorities in the U.S. are reportedly making efforts to ease off some pressure from financial sectors.
In the wake of Coronavirus bailout, Federal Reserve revealed on 22nd March that it would be working with a group of some regulatory agencies to provide banks with more leeway for modifying the loan terms.
Lately, U.S. authorities in the banking system have been involved in every possible measure to cope with the economic crisis looming due to the outbreak of Coronavirus. Almost every day, U.S. President Donald Trump and Federal Reserve are making radical changes and new announcements.
Recently, Federal Reserve, along with some U.S. regulators, made an announcement regarding some changes so that financial institutions could make it easier for the debtors. Federal Reserve stated that its decision would enable the banks to ease interest rates, adjust the loan terms, provide fee waivers, prolong loan times, and offer payment deferrals if required.
While the latest move to drop financial regulations in the wake of the Coronavirus bailout was followed by another important decision. Federal Reserve Chair Jerome Powell’s decision to slash benchmark interest rate to 0%, injecting trillions into private banks, and eliminating all reserve requirements for the banks.
Now the U.S. institutions can not only make modifications in loan terms but could also provide as many loans as they want without the need to worry about the FDIC insured deposits. However, only a month ago, things were quite different, as there were plentiful financial regulations and bitcoin businesses are targeted by U.S officials from Federal Reserve to U.S Treasury.