President Joe Biden passed executive order 14067 on March 2022. The bill seeks to promote the responsible development of digital assets by regulating key issues in the Crypto market. Primary concerns include; curbing illicit finance, consumer protection, and financial inclusion.
Months down the line, the US Department of Treasury seeks to align the policy with the public interest. Consequently, the department invites American citizens and stakeholders to comment on how the policy restructuring could optimize their interests. The invitation was made on Tuesday, July 12th, and will run to August 8th.
The Digital Space Is Dynamic
According to the Under Secretary of the Treasury for Domestic Finance, Nellie Liang, digital assets offer immense user benefits. Some of these pros include; faster payment processing and cross-border payment. Further, a Deloitte survey shows that the adoption of Cryptocurrencies is also growing among corporates that constitute institutional investors. For this reason, the government deems the regulation of Crypto as long overdue because of their growing prominence and dynamic nature. The executive order also seeks to catapult the US Financial system into prominence by ‘responsibly’ implementing Crypto integration into the financial infrastructure.
The U.S. Financial System Is Transitioning into Crypto Based
The American financial system is transitioning into the digital era as the integration of Crypto in the financial system gathers momentum. For instance, the financial market is already feeling the heat as some Cryptos such as BTC and ETH compete with tech stocks. Because of the correlations, trends in stock and Crypto markets oscillate in the same cycle. Additionally, government/Federal Reserve decisions such as a hike in interest rates impact both markets.
The U.S. Is Harmonizing Its Crypto Policy in All Spheres
The US SEC and the CFTC have been developing a framework for regulating the Crypto space. Moreover, a Crypto bill by Sen. Kirsten Gillibrand (D.-N.Y.) and Sen. Cynthia Lummis (R.-Wyo.) seeks to align the use of Digital Assets in the country.
The new bill is, however, far-reaching and will achieve a federal approach in ensuring that the use of Crypto is harmonized in all states. Most importantly, the Biden administration and corporate America believe Crypto is here to stay. The government and regulators must ensure a seamless integration of digital assets in the economy to minimize risks.
Different states have tried to regulate Cryptos at a domestic level. California’s Governor Gavin Newsom issued a similar order to streamline the integration of Cryptos in the Californian economy. At the agency level, the Biden administration has instructed agencies such as the EPA to file a report on Cryptos in 180 days.
In the meantime, the Crypto winter is still prevailing. BTC prices have plunged below $20,000 after a short-lived rally on Monday.