With the rising popularity of Cryptocurrencies, the United States has moved to regulate digital currencies. However, it is not just the US government doing this; other governments worldwide are also formulating strategies to manage this new sector. Consequently, when you are looking for the safest and best Bitcoin account, you will have to check whether they adhere to government regulations in your jurisdiction. For instance, reports reveal that Joe Biden’s administration will issue an executive order that will direct all government agencies to conduct research on cryptocurrency and the central bank digital currency (CBDC) and offer suggestions on how to regulate crypto assets.
Besides that, the government will also ask agencies to develop measures to help protect consumers, investors, and businesses. Furthermore, the agencies will assess the environmental impact and financial risks of the digital currency sector.
The Executive Order
Reports also reveal that the executive order will direct agencies including Homeland Security, State, Justice, and Treasury department to produce reports on the future of money and payment systems.
For example, the order will ask the Financial Stability Oversight Council (FSOC) to research the impact of cryptocurrency on financial stability, especially after the International Monetary Fund (IMF) discussed the matter.
On the other hand, the Attorney General, the Consumer Financial Protection Bureau, and the Federal Trade Commission will evaluate the impact on market competition. Additionally, the Securities and Exchange Commission, The Office of the Comptroller of the Currency, and the Commodity Futures Trading Commission will look at market protection strategies.
After that, the Treasury Department will submit a report to the president on protection strategies after consulting with other stakeholders. The executive order is also expected to look at the merits and demerits of stable coins, privacy, and the distribution ledger technology.
The Joe Biden administration took the step amid increasing anxiety among regulatory authorities regarding its potential to eliminate intermediaries. Those at risk include banks and other financial institutions.
The US government will use the report to coordinate with other countries to develop standard crypto rules applicable worldwide. At the moment, several jurisdictions are working on their own rules to regulate the digital currency sector.
Biden’s Administration Proposal
Biden’s administration had already proposed that only banks should be allowed to issue stablecoins. However, the financial market’s risk aversion has battered digital coins. As a result, Bitcoin reached its weakest levels recently. BTC-USD was off 50% from an all-time high of around 69000 USD. This was after Cryptocurrencies took a hit after investor anxiety over the Fed’s interest rate hikes and Washington policymakers considering regulating the sector. One of bitcoin’s most vocal proponents on Capitol Hill, Senator Cynthia Mills, is expected to introduce a bill crypto regulation. The bill aims to incorporate digital assets into the financial system fully.
Her legislation will also provide guidance on the classes to which different assets belong and provide new rules on crypto taxation as well as consumer protection. On the other hand, Senator Pat Toomey has provided a set of guidelines he is using to inspire his thoughts on how to regulate stablecoins and Cryptocurrencies.
It was only a matter of time before governments started to take the digital currency sector seriously. However, their interest in the industry has caused anxiety among the investors. Nonetheless, it is apparent that the future of cryptos is bright; otherwise, different governments wouldn’t be interested in the sector. What do you think?
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