On the 19th of September, Jake Chervinsky blamed Terra for the negative perception of crypto in D.C. He further revealed that many policymakers do not approve of a permissionless digital or virtual marketplace and that the fall of Terra and UST has given them reasons to put an end to crypto.
Numerous lawsuits alleged the co-founder of Terraform Labs, Do Kwon, and his associates were defrauding investors while also operating a Ponzi scheme. Not less than seven cryptocurrency exchanges were investigated by South Korean authorities in July as part of their inquiries into Terraform Labs.
After the arrest warrants, Terraform Labs was hit hard, with valuations falling to nearly nothing. The worldwide market lost an astounding $500 billion.
Concerning the recent fraud scheme, the US president, Joe Biden, emphasized the urgency of increasing communication with private platforms. It is to ensure businesses are aware of their duties and the dangers of illegal financing linked with digital assets, share knowledge and promote the acceptance of developing technology to adhere to duties.
He also stressed considering whether to request that Congress modify the BSA, anti-tip-off regulations, and prohibitions against unauthorized funds transmission to relate to issuers of digital asset services, such as digital asset exchanges and NFT communities.
Additionally, he will think about pleading with Congress to change pertinent federal laws so that the Department of Justice is allowed to pursue cases entailing virtual assets in any jurisdiction where a victim of those crimes is located. The sanctions for illegal money transmission should be increased to fit those for offences of a comparable nature under other money-laundering regulations.
Jake Chervinsky described the previous week’s report on the crypto executive order by the US President, Joe Biden, as pretty grim and concluded that it almost read like a rejection of the idea of decentralization itself. Several crypto policy personnel think those reports could have looked very different if not for Terra and its ensuing fallout.