U.S. President Joe Biden’s long-awaited cryptocurrency regulatory framework sought to outline a blueprint for governing the burgeoning crypto industry. This study was published recently. So what does the framework contain?
How does the cryptocurrency framework affect the markets?
The Biden administration appears to be taking a “whole-government approach” to overseeing the decentralized finance (DeFi) sector and its ripple effects on the traditional economy. But it mainly focuses on defending against negative events such as financial crimes. This framework, as we reported as Kriptokoin.com, was a continuation of Biden’s March executive order. Authorities focused mainly on money launderers and Ponzi schemers in jurisdictions.
Considering the latest happenings in the cryptocurrency space, the study in question did not come as a surprise. For example, Terraform Labs collapsed and Interpol issued a bulletin for the platform’s founder, Do Kwon. Celsius Network and Voyager went bankrupt – prices of cryptocurrencies also collapsed. However, these events have been successful in undermining those who are criminals or self-interested. An effective set of crypto-related laws that prevent illegal activities and encourage peer-to-peer financial transactions are thought to do wonders for the public image of crypto. But the Biden framework, which is more reactive than proactive, fails to do this, according to expert Guy Gotslak.
USA should use Blockchain too
He believes that US stablecoins and other cryptocurrencies can undo the power of the federal currency. However, according to the expert, the government needs to try to live with cryptocurrencies, and this issue is important for it to be in a prime economic position. Apart from the crypto currency stance in general, it is aimed to provide usage by at least integrating Blockchain. Just like Estonia’s Blockchain-based e-health system, it refers to the storage of medical data or the keeping of property and business records on Blockchain. The expert uses the following expressions:
The federal government should also nurture blockchain technology by investing in large-scale blockchain projects and encouraging companies that use the technology to better serve the public. Going forward, let’s hope both federal and state governments collaborate to write actual crypto industry legislation to not only reduce its harm, but increase its potential.
A new bill for government members to invest in crypto
On the other hand, a bill affecting the members of the US House of Representatives and the Senate was put to the vote. According to the bill submitted to the parliament, if lawmakers do not report the assets they hold within 30-45 days, the $200 fine they pay will increase to $500. It will also require a clearer statement.
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