This week, the US Federal Reserve recognized a vast increase in crypto prices following its assessment of the stability of the crypto market. According to the report, this was the first time the central banks have ever acknowledge this happening.
The central bank also noted that such an increase is caused by the risk appetite of crypto investors who are investing in different crypto assets. As discussed before, crypto was seldom used as a benchmark to determine market conditions. Although there have been discussions about crypto, it was almost never considered due to its volatility.
Right now, the crypto market has been receiving more attention from the Feds. The authorities are giving a closer look at cryptocurrencies and, at the same time, preparing for projects related to digital assets.
However, this doesn’t mean that the Feds will totally embrace cryptos. There were no further elaborations as to the monetary policy and other things relevant to crypto. In fact, the report released by the central bank branded cryptos as “risky assets,” which were placed between treasury yields and housing prices.
A few months ago, US Treasury said that it would be stricter regarding tax compliance related to crypto. It worked with IRS to impose stricter tax rules due to the increasing tax evasion related to digital coins.