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Brian Armstrong says president Trump is “excited” about the Bitcoin strategic reserve
Brian Armstrong, the CEO of Coinbase, said on Jan. 21st that President Donald Trump is eager to make the United States the first country to have a Bitcoin strategic reserve, beating Russia and China to it. Speaking at the World Economic Forum in Davos, Switzerland on Jan. 21st, Brian reportedly told Yahoo Finance that Trump’s enthusiasm for Bitcoin proves his ambition to make America the “crypto capital of the planet.” “He really wants to be the first Bitcoin president,” Brian said, adding that his meetings with Trump before and after the election focused on the crypto industry’s potential. The Coinbase CEO explained that just as the U.S. holds reserves in gold, oil, and rare minerals like palladium, Bitcoin is the next logical step. “The world is moving to a Bitcoin standard for money. Any government that holds gold should also hold Bitcoin as a reserve. President Trump gets that.” The First Family’s crypto venture Last Friday, the president launched his meme coin Official Trump (TRUMP), marketed with the slogan, “Join the Trump Community. This is History in the Making!” The coin, developed by CIC Digital, an affiliate of the Trump Organization, has a carefully managed supply structure. The official website shows that CIC Digital and its affiliates own 80% of the total supply, with new tokens scheduled for release over three years. Affiliates will reportedly earn revenue from trading fees as tokens are sold. Within 48 hours of its launch, the TRUMP meme coin reached a $73 billion market cap, briefly surpassing Dogecoin as the largest meme coin. However, its valuation has since dropped to $7.3 billion, according to current data from CoinMarketCap. The very next day, First Lady Melania Trump launched her own meme coin, Melania Meme (MELANIA), which currently holds a $732 million market cap. As Cryptopolitan reported, government ethics watchdogs have raised concerns about the Trump family profiting from their political positions. Despite the backlash though, industry analysts see this as a turning point. Asset manager Bernstein, said, “The launch of a meme coin by the biggest political figure in the world is a massive paradigm shift in how governments view crypto. This could be the beginning of direct engagement with the masses through blockchain technology.” Republican Senator Cynthia Lummis, a proud and renowned Bitcoin supporter in Congress, introduced the Bitcoin Act of 2024 in July to establish a reserve holding 200,000 Bitcoins, worth $2.1 billion at current prices. After Trump’s November 5 win, she tweeted, “We are going to build a strategic Bitcoin reserve.” Yesterday, Lummis met with Eric Trump at the Capitol to discuss plans for the reserve, according to Bloomberg. Eric then took to social media, urging investors to “bet on crypto” as part of their belief in America’s limitless potential. “No question Biden left a mess, but that mess will be corrected, and the next four years are going to be spectacular,” he said, predicting “transformational wealth” under his Dad’s leadership. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

2025-01-22 01:34
U.S. faces growing pressure to maintain AI edge over China, warns Alphabet’s CIO Porat
The U.S. is under immense pressure to maintain its dominance in developing Artificial intelligence. Alphabet’s Chief Investment Officer, Ruth Porat, emphasized that China is challenging the U.S.’ position, and maintaining dominance is not guaranteed. Speaking on the sidelines of the World Economic Forum in Davos, Porat said : We’re probably a year plus ahead in models. The West is ahead in chips… I think China is on par and may even be ahead on what’s called diffusion of basic capabilities. Ruth Porat China’s technological growth raises the geopolitical temperature China has continued to focus on technology development, which has caused worries in Washington, DC. Earlier this month, former president Joe Biden issued limits on selling advanced AI chips globally. The set conditions meant that the AI chips would not reach perceived U.S. enemies in a move to maintain control over the emerging technology. During the interview, Porat stated that most world leaders seeking digital transformation prefer to work with Washington but will seek alternatives in case the U.S. is absent. Last month, the U.S. tightened export controls to China for the sale of tools and equipment for developing AI. The U.S. has also been persuading the Dutch government and other allies to tighten policies on AI chip sales to China to slow the progress of its chip sector for national security reasons. The CIO called on President Trump’s administration to take bold and responsible actions in governing AI development. She said that regulations need to guide different geographical areas without impeding investments. Google has invested heavily in AI development through Google DeepMind, its premier AI lab. Last month, the firm introduced Gemini 2.0, an improved version of its flagship artificial intelligence model. Staying competitive is crucial for Google to ensure that the AI tools from OpenAI and other firms do not threaten its core search business. Antitrust regulators push to force the sale of Google’s Chrome browser The Department of Justice and U.S. antitrust regulators are pressuring Alphabet, Google’s parent company, to divest its Chrome web browser. Porat expressed doubts about the rationale behind this move, echoing Alphabet CEO Sundar Pichai’s concerns about its potential impact. According to Pichai, the government’s approach might undermine technological advancements achieved by the U.S. Pichai was among the guests who attended President Trump’s inauguration alongside tech gurus such as Elon Musk and Mark Zuckerberg. Google contributed $1 million to the president’s inauguration fund earlier this month. On his first day in office, President Trump issued an executive order to revoke a Biden-era order on AI regulation to implement safety and transparency requirements for AI developers. With the repeal, Trump has questioned the future of U.S. AI policy at a time when other countries are jockeying to set rules for disruptive technology. Last year, the European Union passed the AI Act , perhaps the most comprehensive guardrails for AI to date. The rules ban facial recognition and require strict oversight for “high-risk” AI used in sectors like healthcare and law enforcement, among other areas. President Donald Trump is set to unveil a private sector investment of up to $500 billion to support artificial intelligence infrastructure. According to sources, OpenAI, SoftBank, and Oracle are planning a joint venture in Texas called Stargate. The initial commitment will be $100 billion, and the total investment will be up to $500 billion over the next four years. Stargate’s first joint venture will be a data center in Texas. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

2025-01-22 00:40
Scammers capitalize on TRUMP memecoin to deploy thousands of fake tokens
Blockchain security firm BlockAid has identified over 200% increase in the number of scam tokens named after Donald Trump after the launch of his official memecoin. The firm’s latest report disclosed that scammers deployed 6,800 tokens containing Trump’s name on the same day of the launch. This represents a 206% increase in the number of tokens bearing the president’s name already in the market. With these new tokens launched by scammers to capitalize on TRUMP’s momentum, BlockAid observed that they also used malicious branding to deceive investors into thinking they were the real deal. Beyond launching fake tokens with Trump’s name, the analysis also shows that the scammers created tokens using the names of other first family members, including Melania and Barron, to exploit the incident. Overall, the number of tokens that contain metadata referencing the Trump family increased by 592% during the period. Fake TRUMP Memecoins (Source: Blockaid) Interestingly, one of the fake BARRON tokens created rose as high as $450 million in market cap before crashing. It is now down more than 95% from its peak. Beyond the proliferation of fake tokens after the launch, scammers also deployed several malicious decentralized applications using the Trump brand to capitalize on the moment. Ninety-one fake dApps were launched within 24 hours of the TRUMP memecoin launch, representing a 14x increase. Scammers used popular X accounts to promote fake tokens Meanwhile, some bad actors also tried to capitalize on the TRUMP memecoin launch by promoting new tokens that they claim are affiliated with Donald Trump. In one of the instances, an account on X that shares Trump posts from Truth Social, TrumpDailyPosts , promoted several fake memecoins. There are reports that the account was compromised to share contract addresses and fake screenshots that show Trump endorsing POWER and WIN tokens on Truth Social. However, some believe the account deliberately posted the scam tokens. While some scammers tried to capitalize immediately on the Trump launch, some bad actors also tried to exploit speculation that the Trump team would launch more tokens. One account on X claimed that the next token from the team would be a USA coin, which will launch on January 24. However, Trump’s son, Eric Trump, quickly quashed the rumors by posting, “$USA coin has nothing to do with us.” There were also unsubstantiated rumors that more Trump-related coins would launch on Ethereum. BlockAid calls for improved security in crypto With Trump now sworn in, the hype that fueled his memecoin rise to a peak of $75 appears to have subsided, and the token is now at $44. While there have been many reports about those who made millions or lost fortunes on the TRUMP token, the number of users who lost through scam tokens is unknown. Nevertheless, BlockAid noted that the incident highlights the wide security gap in the crypto sector and shows how scammers will capitalize on the fear of missing out (FOMO) to exploit vulnerable users through scam tokens and malicious dApps. It said: “Public interest, combined with the controversial figure behind the brand, meant that people rushed to buy in—often without proper due diligence. Scammers capitalized on this frenzy.” The platform has now called for the crypto industry to prioritize security on the developer end. While most blockchain security experts have preached eternal vigilance and caution for users, BlockAid notes that this is not a realistic solution and that it is better for crypto developers and crypto firms to address the problem as solving security issues will boost adoption. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

2025-01-21 23:25
TRUMP, BONK and DOGE proposed for ETF in new filing with the US SEC
A company has filed a prospectus to launch a set of new ETFs, this time tapping some of the newer meme tokens. The ETF proposal also includes the possibility of an ETF based on Official Trump (TRUMP). A new prospectus has been filed with the US Securities and Exchange Commission (SEC), listing a new selection of coins and tokens. The issuer included even the recently launched Official Trump (TRUMP), in addition to other meme tokens. The proposals, filed as Rex-Osprey, feature a selection of traditional assets BTC, ETH, and SOL. The filing expands the funds to also include the legacy meme coin, DOGE. Another ETF was proposed for BONK, one of the leading Solana memes, and lastly, an ETF for an asset only a few days old, TRUMP. The proposed TRUMP ETF will be launched through its own subsidiary registered as a Cayman Islands business entity, REX-Osprey TM TRUMP (Cayman). A prospectus is only the very first step in the process, as the final SEC approval may take years. However, the move drew renewed attention as TRUMP suffered its first drawdown after the initial hype. The ETF filing comes on the first business day after the long weekend in the USA, extending the recent trend of new ETF proposals or secondary filings. Recently, ProShares filed for products based on spot and derivative XRP trading, while VanEck filed for an Onchain Economy ETF. The TRUMP ETF was proposed among older, more liquid assets, despite warnings that the TRUMP meme token was a sign of support and not an investment opportunity. However, TRUMP was the more successful asset compared to World Liberty Financial (WLFI) due to the immediate trading opportunities. With the recent ETF filing, TRUMP is the one crypto asset to speed-run the process from a decentralized launch to a Coinbase listing and a potential ETF. New filing aims to speed-run the ETF process Not only was TRUMP selected just days after its launch, but the issuer chose an SEC procedure with a shorter time frame. The risky type of filing is made under the Investment Company Act of 1940, which could lead to a launch 75 days after filing. The extremely short period to launch caused some skepticism about the chances of the new fund and its potential investment value. The filing itself depends on the SEC’s reaction to the new proposal. The ETF product will also not rely on the spot market, or hold a reserve of TRUMP tokens. Instead, the filing will include a mix of derivatives and assets held by the Cayman Islands entity. The proposed ETF on TRUMP will rely on derivatives , or making a prediction on the token’s spot value. The issuer will seek exposure to the price performance of TRUMP through derivative contracts. The ETF may also add investments into other ETFs, ending up with a product to mitigate risk. At a maximum, the final product may hold 25% of TRUMP tokens or exposure to the asset, with the remaining mix depending on US Treasuries, other types of government debt, money market funds, cash, and cash-like equivalents. The issuer warned there may be a limited market for TRUMP derivatives, as well as few counterparties, leading to a risky, illiquid market. Currently, Hyperliquid is one of the few exchanges to add a derivative market for TRUMP tokens. In comparison, the latest series of ETF filings on Solana, Litecoin, and others, have used the 19-4b form, which has a 240-day waiting period. The long approval process was what extended the time for the launch of the first Bitcoin and Ethereum ETF. TRUMP recovers after the initial sell-off TRUMP was a surprisingly liquid token, gaining traction both on Meteora and Orca DEX and on centralized markets. Initially, the token dipped by 50%, down to a low of $31. The correction was mostly due to profit-taking, especially by early whale buyers. Later, TRUMP recovered to $42.25, with trading volumes over $13B. The token tracked the overall performance of the crypto market, where most assets bounced from their lows. Existing ETFs continued to accumulate tokens, with Bitcoin funds adding another 4,023 BTC, signaling the continuing greed-based accumulation. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

2025-01-21 23:00
President Trump’s SEC launches a crypto task force and TRUMP meme coin surges in reaction
‘Crypto president’ Donald Trump’s new and improved Securities and Exchange Commission (SEC) has announced today the creation of a crypto task force to tackle the industry’s regulations. Per the official statement from SEC Acting Chairman Mark T. Uyeda, this task force will be led by Commissioner Hester Peirce, and it will develop “clear rules for crypto,” something that has been missing for years. The group is also designed to work with government agencies, Congress, and international bodies. Peirce, long nicknamed “Crypto Mom,” has been a proud advocate for crypto for years. She will be supported by Richard Gabbert, who will serve as Chief of Staff, and Taylor Asher, stepping into the role of Chief Policy Advisor. SEC steps up as crypto chaos intensifies Under Gary Gensler, the SEC was criticized for its heavy-handed and inconsistent approach to crypto regulation, relying mostly on enforcement actions instead of clear guidelines. Companies have been left guessing what’s allowed and what isn’t, often finding out the hard way. This new task force claims it’s gonna change that by setting straightforward rules for registration and compliance. Uyeda said: “This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation.” The task force will also coordinate with federal departments like the Commodity Futures Trading Commission (CFTC) and international regulators. Commissioner Peirce added that the initiative would only succeed if it had plenty of input from industry stakeholders. Meanwhile, the crypto market erupted with the news as President Trump’s own memecoin, $TRUMP, finally went green again. The token, which plummeted two days ago after First Lady Melania Trump launched MELANIA, has now revived to above $50 as of press time. Coinbase decided to list the meme coin too following the news. But Kraken has already made headlines as the first US exchange to do so four days ago. Social media buzzed with criticism, with many pointing out the risks of mixing influential people with crypto projects, as we’ve seen many times in the past. Despite the backlash, analysts like Gautam Chhugani from Bernstein believe: “The President of America has his own coin. Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem.” Meanwhile, after hitting $109,350 before Trump’s inauguration, Bitcoin dipped to $103,527 shortly after before rebounding to $107,000 at press time. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

2025-01-21 21:07
As Litecoin Stagnates, This Presale Crypto Is Being Called the Next Big Investment
Litecoin (LTC), often referred to as the silver to Bitcoin’s gold, has struggled to maintain its momentum in the competitive cryptocurrency market. While its historical significance and steady adoption give it a strong foundation, Litecoin’s growth has largely stagnated, leaving investors searching for more lucrative opportunities. Enter Lightchain AI , a presale crypto that has already raised nearly $10 million, with tokens priced at $0.00525. With its innovative approach to blockchain technology, Lightchain AI is being hailed as the next big investment for those seeking high-growth potential. Why Litecoin is Losing Momentum Litecoin has been a choice for its quick deal times and small costs next to Bitcoin. But, its miss of new ideas has held back its chance to match with fresh, smarter͏ blockchain works. As Layer 1 and Layer 2 fixes get more useful, Litecoin’s main use may risk getting old. This pause has left a lot of buyers wanting other choices that give both new ideas and growth. Also, Litecoin’s aim of being a money-carrying coin has held back its reach, especially in a market that is more and more ruled by decentralized finance (DeFi), strange art tokens (NFTs), and other new uses. While Litecoin stays a strong pick for safe and quick trades its failure to grow beyond what it was made for has lowered its charm to investors who want growth. Lightchain AI Innovation Driving Investor Confidence In contrast to Litecoin’s steady but slow trajectory, Lightchain AI is making waves with its fresh approach to blockchain technology. Designed to address inefficiencies in existing platforms, Lightchain AI offers scalable solutions for decentralized applications (dApps) while maintaining a strong focus on user accessibility. This versatility makes it appealing to developers and enterprises alike. By leveraging privacy-focused features, advanced blockchain infrastructure, and Zero-Knowledge Proofs (ZKPs), Lightchain AI ensures sensitive data remains fully protected during computations, building trust for both developers and users. This real-world utility, far beyond speculative trading, is a key driver of its growing popularity among early investors. Shift Toward High-Growth Opportunities The contrast between Litecoin and Lightchain AI underscores the shift in investor priorities. While Litecoin’s reliability and established presence make it a safe choice, it lacks the growth potential seen in emerging projects like Lightchain AI . For investors seeking a blend of innovation, utility, and high ROI, Lightchain AI’s presale performance and ambitious vision position it as a standout opportunity in the current market. With its presale still ongoing, now is the time to consider adding Lightchain AI to your investment portfolio. As Litecoin struggles to maintain momentum, Lightchain AI is emerging as a promising alternative for those seeking high-growth potential in the ever-evolving world of cryptocurrency. So don’t miss out on this opportunity and join the Lightchain AI presale today! https://lightchain.ai https://lightchain.ai/lightchain-whitepaper.pdf Tweets by LightchainAI https://t.me/LightchainProtocol

2025-01-21 21:00
TON Foundation: All Telegram mini-apps must migrate to TON ecosystem
TON Foundation has noted that the Telegram ecosystem must now exclusively use TON as its main blockchain, urging app builders to update their tech stack. TON Foundation expanded its partnership with Telegram, establishing an exclusive relationship that will affect all mini-apps. Following the new agreement, the TON blockchain will now become the exclusive infrastructure for all mini-apps in the Telegram chat app. This move is expected to deepen the technological ties between Telegram and the TON chain. Telegram mini-apps took over in 2024, with the biggest number of users flocking to airdrops and tap-to-earn games. Until recently, Telegram mini apps could use other wallets, including Solana’s Phantom, to onboard new users and distribute tokens. Under the exclusive partnership, all mini-app developers will have to switch to TON Connect, the native TON protocol for connecting Web3 wallets. Based on the terms and conditions of Telegram, bot and app builders will have to use the TON chain and interact with TON Connect. The currently used multiple chains and wallets on Telegram will be disabled, making TON the exclusive choice. New apps will not be able to offer tokens on other chains, but only issue assets and NFT on the TON chain. The TON Connect feature will only allow users to bridge Bitcoin (BTC) and connect with multi-asset wallets, but the chat app will no longer carry Ethereum, BNB Smart Chain, and other L1 or L2 tokens. App builders will not be permitted to launch workarounds and allow the usage of tokens on other chains. The rule of using only the TON network will apply to bots that are connected to mini-apps. Existing trading bots are exempt from the rule, and the new requirement will not affect any of the popular sniping bots, set up to serve specific chains. Telegram still reaches more than 950M users, with thousands of mini-apps ranging from utility features to complete games. TON will become a key payment tool on Telegram TON, the native token of the TON chain, will become the exclusive asset for payment for all Telegram chat services. TON will pay for Premium users, flow into the Telegram Ads ecosystem, pay for Telegram Stars, and will be used to pay out ad revenues. App developers are expected to switch to TON Connect by February 21, as the TON Foundation urges them to start the process immediately. The apps that manage to migrate within Telegram’s deadline will receive perks and support from the TON Foundation. Developers can also apply for up to $50,000 in advertising credits to spread their influence on Telegram. The TON chain still carries native USDT, which is also widely used on Telegram, though for selective purposes and trading. The Telegram app will not use the stablecoin, instead leaving it for other projects. TON carries $266.12M in liquidity, with an additional $1.41B in native USDT and a smaller amount of bridged tokens. The TON chain remains niche compared to others like Ethereum or Solana but still carries its own ecosystem of gaming tokens, memes, and NFT. Telegram to carry tokenized items Telegram will adopt a Web3 approach to owning additional digital items. For Telegram users, those items will be tokenized exclusively on TON, including emojis, stickers, and exclusive limited edition images as NFT. After a turbulent year, marked by the arrest of CEO Pavel Durov , Telegram still turned profitable and prepared for more growth in 2025. The chat app now boosted its position as a Web3 hub, thanks to the inflow of mini-app developers. In the coming months, Telegram aims to position itself as a more legitimate hub for on-chain activities. Manuel Stotz, President of the TON Foundation, said Telegram is already established as the default messaging app for global blockchain users. Stotz will also focus on expanding TON in the USA , tapping the most actively growing crypto market. The recent shift in TON usage may create additional demand for the native token. Overall, TON has traded in a relatively tight range. Despite the recent crypto market breakout, TON hovered around $5.21, keeping to its usual price as a utility asset. TON is already kept in 136M addresses and used to pay for gas fees to use jettons, or the chain’s native tokens. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

2025-01-21 20:50
Bank of America CEO says banks would embrace crypto payments if regulators approve
Bank of America CEO Brian Moynihan said banks in the US are waiting for regulatory approval to embrace cryptocurrencies for payments. According to Moynihan, financial institutions only need the rules to allow the use of cryptocurrencies. The CEO said this during an interview with CNBC Andrew Sorkin at Davos’s World Economic Forum (WEF), where he highlighted the change in traditional institutions’ perception of crypto. He said: “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.” Moynihan appears to be focused on using cryptocurrencies for payments in a similar context to other options such as Debit Cards and Apple Pay. According to the CEO, Bank of America already has several patents for blockchain applications, so it is ready to enter the industry. However, the bank executive did not discuss the value proposition of cryptocurrencies as an investment. Interestingly, most traditional financial institutions have shown interest in this area by buying spot crypto exchange-traded funds (ETFs) even as their commercial banking arms pulled away from retail crypto users. Meanwhile, many in the crypto community have highlighted Moynihan’s comments as a sign of positive tailwinds for the crypto industry. Marathon Digital CEO Fred Thiel noted this was a good sign, while former Commodity Futures Trading Commission (CFTC) chairman Chris Giancarlo said it would happen. When will regulatory clarity come to crypto? Despite the hype around banks embracing crypto, many in the industry still await an answer regarding when regulatory clarity will come. Many had expected President Donald Trump to officially endorse crypto in his inauguration speech or through one of the first executive orders (EOs) With neither happening so far, speculations have been flying around on X. One of them comes that an executive order affecting the crypto industry is on the way. Bitcoin magazine CEO David Bailey posted earlier on January 21 that an executive order affecting the crypto industry is among the first 200 that Trump would sign, but he did not specify what the content would be. He said: “Got confirmation tonight that our EOs are among the first 200. I have no idea what made it in, but good news cometh.” Meanwhile, Fox Business journalist Eleanor Terret also claimed that two EOs on establishing a crypto council and banning the creation of a Central Bank Digital Currency (CBDC) are awaiting Trump’s signature. There are also speculations that the President will pardon Silk Road creator Ross Ulbricht soon, and many expect this to lead to a surge in Bitcoin value. Changes at SEC and CFTC bodes well for crypto Although the new president has not made any official declaration that favors crypto, there are still several positive signs for the industry. The two regulators dealing with the sector, the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), now have pro-crypto acting chairs in Mark Uyeda and Caroline Pham, respectively. According to Fox Business reports, Uyeda, who will leave the post once the Senate confirms presidential nominee Paul Atkins, already plans to reverse some of the erstwhile chair Gary Gensler’s policies. Under Gensler, Uyeda was one of the major critics of the regulation-by-enforcement approach to crypto and described it in one interview as a “disaster for the whole industry.” With him now in the driving seat, even temporarily, and with another pro-crypto commissioner, Hester Pierce, he has already started making moves to improve regulatory clarity in the interim. Uyeda recently launched a crypto task force to develop a comprehensive framework for the industry. The agency currently has only three commissioners, with Democrat Caroline Crenshaw as the third after Gensler resigned alongside Jaime Lizarraga. The uncertainty over when regulations will finally arrive has not negatively impacted crypto prices, with Bitcoin still maintaining its value above $100,000 and almost every other asset on an upward trend. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

2025-01-21 20:30
FCA faces growing calls for overhaul amid criticism
The UK’s Financial Conduct Authority(FCA) faces growing calls for overhaul as criticisms over incompetence, dishonesty, lack of transparency, unaccountability, and lacklusterness mount. FCA is one-half of the UK’s twin peak regulators, complimented by the Prudential Regulation Authority. A parliamentary report accusing the regulator of uninspiring behavior has heavily criticized it. FCA has admitted that it inappropriately delayed the public’s freedom of information requests, confirming the parliamentary accusations. The criticism extends beyond parliament. Independent reviews have previously faulted the FCA for its handling of collapsed firms. Some of those firms include London Capital & Finance and the Connaught Income Fund. Former city minister Lord Paul Myners always criticized the regulator for not being conscious of detecting warning signs before the failure of investment funds run by Neil Woodford. The lack of detection and early warnings made several investors lose money. Public outcry is justified by the deeds of the regulator The Financial Services Authority, which preceded FCA before the 2008 economic meltdown, was highly endorsed due to its hands-on approach. However, the praises narrow immediately after the financial crisis. In most scenarios, the FCA is always viewed through a lens and faces heavy criticism when the cases they handle go wrong. However, they never receive credit when financial services function smoothly and are heavily blamed by the industry for hindering business. The report from parliament’s outcome is not far-fetched since they gathered evidence from whistleblowers, victims, and FCA employees in terms that bordered on selection bias. The FCA is accused of the same bias: “Inconsistent, selective in their use of evidence, mendacious when it suits them and error-prone. ” Others feel that the Financial Conduct Authority is full of unnecessary bureaucratic processes that cause delays. The issues raised are serious, and they deserve to be handled. The regulator should show strength, character, and competency, with the ability to regulate misbehavior to achieve timely redress. Yet, the FCA doesn’t inspire confidence, and as currently constructed, it may never work for the public. The regulator is marred by the conflict of interest and disorganization The FCA has four operational objectives (consumer protection, market integrity, competition, and growth) and more than thirteen cross-cutting commitments. It frames policies, clears firms and individuals, monitors consumer duty, and enforces actions. This broad mandate stretches the regulator’s focus, increasing the risk of conflicts of interest and operational confusion. Compounding the issue, the companies often recruit the FCA’s nearly 5,000 staff they are tasked with supervising, raising significant concerns about impartiality and transparency. With all these happenings, the parliamentary report’s terming of the FCA’s transformation program as a failure is unsurprising. In fact, if the parliamentary report had given them a clean sheet, the world would have been stunned. Although the situation looks dire, the commitment of the senior management team cannot be overlooked, but they are facing an impossible task. Launched in 2012, the twin peaks model should be revised. It was a noble cause to try to offload a single regulator and divide responsibilities into two separate entities to improve service delivery. However, in practice, the twins are not functionally separate. The PRA only oversees the bigger companies, and the FCA is in charge of the stability and conduct of 42,000 others. To improve focus and delivery, FCA should identify only a few responsibilities and further distribute others to entities like the Competition and Markets Authority and the Department for Business and Trade. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

2025-01-21 20:10

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