US President Joe Biden; It has released a crypto bill that will have a huge impact on Bitcoin (BTC), XRP, stablecoins and CBDCs. The White House stated that the crypto sector offers opportunities for the US to re-establish its dominance in the global financial sector. Here are the details…
What’s in the White House document affecting XRP, BTC, and crypto?
After consulting multiple federal agencies, the Joe Biden administration has finally released a regulatory framework for cryptocurrency and stablecoins. The latest statement from the White House urged the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to intensify their oversight functions in the cryptocurrency space. According to the report, the White House showed how the cryptocurrency industry has grown over the years.
The U.S. government talked about the market cap of cryptocurrencies reaching $3 trillion last November. Therefore, he stressed that investors should be protected against illegal activities occurring in the sector. Overall, there are strong indications that the US government is willing to capitalize on the opportunities in the cryptocurrency market.
Cryptocurrencies offer the US a chance for financial dominance
Similarly, the White House stated that the cryptocurrency sector offers great opportunities for the US to re-establish its dominance in the global financial sector. This stance has forced the Joe Biden administration to strengthen the industry against fraudulent activity to protect investors. With this approach, the cryptocurrency space will help positive effort from the government. It will attract a healthier approach.
As we reported on Cryptokoin.com, last March, Joe Biden ordered government agencies to conduct public inquiries about crypto regulations. Over the past six months, these institutions have gathered opinions. He then created a general framework for the industry. On a positive note, regulation from the White House emphasizes investor protection. This emphasis is somewhat different from what the cryptocurrency space generally witnesses.
An excerpt from the publication shows that the regulation was messed up by some notable factors. At the forefront of these factors is the protection of consumers and investors. Apart from this, it consists of items such as promoting financial stability and combating illegal financing. In addition, the leadership and economic competitiveness of the USA in the global financial system; financial participation and responsible innovation are among these factors. In addition, the document addresses the stablecoin and Central Bank Digital Currency (CBDC) situation.
On stablecoins and CBDC
Additionally, the publication discussed the circumstances surrounding the state of stablecoins in recent months. The White House discussed how the stablecoin industry suffered a huge loss. Notably, with the collapse of Terra’s algorithmic stablecoin, UST, losses totaled nearly $600 billion. Now, the report aims to protect investors against unhealthy behavior in the industry. Meanwhile, the report encourages continued research on CBDC. Finally, the White House calls for “the creation of a Treasury-led interagency working group to support the Fed’s efforts.”
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