- U.S. President Joe Biden has released a crypto framework that will have a major impact on Bitcoin XRP, stablecoins, and CBDCs.
- The Whitehouse opined that the digital asset sector provides huge opportunities for the United States to reestablish its dominance in the global financial sector.
After consulting numerous federal agencies and relevant stakeholders, the Joe Biden administration has finally released a regulatory framework for cryptocurrency and stablecoin. In the latest statement from the Whitehouse, the United States Government urged the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to intensify their oversight function of the digital assets sphere.
According to the report, the Whitehouse illustrated how the cryptocurrency sector has grown over the years. The US government attested to how the market capitalization of digital assets hit $3 trillion last November. Therefore, the publication emphasized the need to protect investors against illicit activities occurring in the industry. Overall, there are strong indications that the US government is willing to tap into the opportunities in the digital assets market.
Similarly, the Whitehouse opined that the digital asset sector provides huge opportunities for the United States to reestablish its dominance in the global financial sector. This stance compelled the Joe Biden administration to strengthen the sector against fraudulent activities to protect investors. With this approach, the cryptocurrency space will attract a healthy approach from the government that will aid it to strive positively.
Recall that last March, the Joe Biden administration released an executive order instructing government agencies to seek public opinion on crypto regulations. In the course of the past six months, these agencies had garnered opinions and then formulated an overall framework for the sector. On a positive note, the regulation from the Whitehouse emphasizes investor protection. This emphasis is somewhat different from what the cryptocurrency space has witnessed.
Related: Biden Admin reportedly developing executive order for crypto
An extract of the release indicates that the regulation will be confused by some notable factors. These factors are “consumer and investor protection; promoting financial stability; countering illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.” The release addresses the situation of stablecoin and the Central Bank Digital Currency.
Sidenotes on Stablecoin and CBDC
Furthermore, the release discussed the circumstances surrounding the state of stablecoins in recent months. The White House discusses how the stablecoin sector suffered a huge loss. The loss amounted to about $600 billion in evaporation of investors’ funds. This is about the crash of the algorithm stablecoin, UST, and the slight struggles of USDT.
Now, the release aims to protect investors against the unhealthy vices in the industry. Meanwhile, the report encourages the continuation of the research on CBDC. Lastly, the White House calls for the “creation of a Treasury-led interagency working group to support the Federal Reserve’s efforts.”