Shalini Nagarajan

Digital neobank Revolut is suspending its cryptocurrency-related services within the US in response to the prevailing ambiguities and complex regulatory environment around the industry there.



The suspension will be implemented starting Sept. 2, after which US customers won’t be able to execute purchase orders for cryptocurrencies on the platform.



From Oct. 3, things will tighten up even more as US customers won&#8217;t be able to buy, sell or hold any crypto.



“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US,” a spokesperson told Blockworks on Friday.



“This decision has not been taken lightly, and we understand the disappointment this may cause,” they added.



The suspension is only applicable to <a href="https://blockworks.co/tag/revolut">Revolut</a> users in the US. Customers in other markets can still sign up and use its crypto services without changes.



Revolut has said that pertinent information regarding the suspension of crypto services in the US will be communicated directly to the affected customers.



Leading crypto firms are encountering regulatory challenges in the US. Both <a href="https://blockworks.co/tag/binance">Binance</a> and <a href="https://blockworks.co/tag/coinbase">Coinbase</a> have found themselves embroiled in legal disputes with the <a href="https://blockworks.co/tag/sec">Securities and Exchange Commission</a> over accusations of offering unregistered securities. 



Coinbase has <a href="https://blockworks.co/news/coinbase-sec-regulatory-clarity">argued</a> that the SEC lacks the authority to &#8220;retroactively&#8221; oversee digital asset exchanges and has accused the regulatory body of overstepping its jurisdiction in its attempt to assert control over the regulation of the industry.



In July, Revolut told its US customers that it would <a href="https://blockworks.co/news/revolut-delists-ada-matic-sol">delist</a> Cardano&#8217;s ADA, Polygon&#8217;s MATIC and Solana&#8217;s SOL tokens from its platform. This decision was also prompted by the evolving legal landscape and regulatory adjustments around cryptocurrencies in the US.



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Revolut

Revolut to halt US crypto services next month

Casey Wagner

<div id="highlights-block_6154912134d2a" class="highlights">
 <ul>
 <li>Representative Jerry Nadler suggested the US Treasury Secretary mint a $1 trillion coin in order to avoid the US defaulting on its debt for the first time in history</li>
 <li>The idea has been thrown out for decades, and it is perfectly legal </li>
 </ul>
 
</div>



Yes, the United States government has the power to mint a $1 trillion platinum coin to pay off US Treasury Bills, and yes, there is at least one congressman on board.&nbsp;



Representative Jerry Nadler (D-NY) voiced the idea on Tuesday during a House Democratic caucus meeting, according to Speaker of the House Nancy Pelosi.&nbsp;



“Jerry Nadler wants to have a coin, a trillion dollar coin,” she told reporters Tuesday. “That doesn’t even require a congressional act.”



The idea appears to be legally sound under a vague provision of the Coinage Act of 1792, more commonly known as the Mint Act, that authorizes the minting of platinum coins for any amount to be used to finance public debt.&nbsp;



Pelosi is correct, congressional approval is not required. The Treasury Secretary has the authority to &#8220;mint and issue coins&#8230;in amounts the Secretary decides are necessary to meet the needs of the United States,&#8221; according to a 1982 amendment to the Coinage Act.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“On one hand, minting what is ultimately a meme coin to work around national debt limits shows how arbitrary the fiat currency system is in the first place, and wouldn&#8217;t have a major quantitative effect on anything, if performed once,” said Lyn Alden, founder of Lyn Alden Investment Strategies. “On the other hand, going that route can really spook the market by setting a bad precedent, because it basically goes around the intended checks and balances that keep some fiat systems more reliable than ‘banana republic’ fiat systems.” </blockquote>



Under US law, the Treasury can issue bonds to pay its obligations, but Congress is required for authorization on spending and taxes. The Federal Reserve is supposed to be independent of both the executive and the legislative branches, choosing what assets they will buy or sell within their mandate, Alden said.&nbsp;



“The Treasury (executive branch) going around Congress (legislative branch) and the spirit of the law by minting a coin in a loophole, and then encouraging/forcing the Fed to swap for it (i.e. going around the concept of central bank independence to support the Treasury market), basically shows that the Treasury can spend without taxing or issuing debt, and can therefore outright print money,” Alden said.&nbsp;



“Of course that&#8217;s essentially what is happening anyway, but it still needs to be rubber-stamped by a few supposedly separate entities, whereas this approach breaks that illusion of checks, balances, and independence.”&nbsp;



It is not the first time that the idea has been floated. Talks of minting a platinum coin swirled during President Obama’s tenure when a similar debt ceiling crisis was faced. He later described the crisis as one of the scariest points of his presidency and the idea of minting a coin seemed absurd to him.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;It was some primitive &#8230; it was out of the Stone Age,&#8221; President Obama said during an interview on the “Pod Save America” podcast in 2017. &#8220;I pictured rolling in some coin.&#8221;</blockquote>



As for logistics, the US government could, in theory, deem a coin of any size worth $1 trillion. President Obama admitted that when he pictured the coin, it was quite large.



It is also a common misconception that the coin of such a value would require copious amounts of platinum. In reality, the value of coins minted by the US Treasury is determined by legal tender, not material value.&nbsp;



The coin, if created and sold, would become the property of the Fed. It would likely be kept with other physical assets in the vault in the basement of the Fed Bank of New York in Manhattan.



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