The US government’s stance on crypto regulation and adoption is still unknown, and a final decision could be far from surfacing anytime soon. The country has made some steps to make the crypto space safer for investors and the world even without a legal framework. It had conducted several crackdowns, like in 2013, when the feds clamped down on Silk Road due to cryptos’ role in money laundering.
It has also made examples of bad players throughout the years, like in the 2017 ICO scams era. However, the most radical changes have been experienced with Joe Biden’s era as president of the United States of America.
Earlier this year, the SEC and the treasury confirmed that they were rallying together to draft a crypto regulatory proposal. The Chairman of the SEC even talked to lawmakers regarding his Commission’s effort in crypto regulation. On JAN 27, 2022, the US revealed an upcoming regulatory framework.
Below is information on Biden’s Administration’s effort on crypto regulation so far and what to expect in the upcoming executive order.
Biden’s Administration’s Efforts Regarding Crypto Regulation
Biden’s Administration is seeking to introduce an executive cryptocurrency order sometime this month. The order is to make the crypto space more friendly to the investor and chase away bad players. It encompasses all of the efforts of his administration to create a more uniform governing structure of the assets.
The executive order rollout report came after the Federal Reserve Board(FRB) released a paper on the pros and cons of a US CBDC. The order seeks to develop a more organized policy-making system encompassing all bodies in the government. It also wants to maintain US leadership in the global economy.
Since the crypto space is vast and needs time to regulate appropriately, Biden plans to begin with creating unity among his regulatory bodies. This step will be essential in regulating the assets since the rules provided will be solid and easier to enforce. However, some analysts warn that he might try to centralize power in the crypto space.
The SEC’s and Other Regulators Space on Biden’s Crypto Regulatory Plan
Biden’s regulatory organizations have made different calls regarding crypto regulation over his years of power. The SEC, in particular, has exhibited the largest influence on crypto space to date. The Commission has green-lit the trading of crypto products and even leaked that the country does not plan to ban BTC any time soon.
Other organizations like the Office of the Comptroller of Currency (OCC) have also made their stance on cryptos known. Others like the IRS, Treasury, and CFTC have also issued their statements regarding cryptocurrency. However, some of these efforts have not had landmarking success due to contradiction and lack of unity.
Biden’s Administration wants to foster unity between the White House National Security Council, the State Department, the Treasury, National Economic Council, and Council of Economic Advisers. These departments will then join hands with regulators and related agencies to make a wholesome regulatory framework. The President also wants this alliance to help forge uniform crypto regulations globally.
What the US Lawmakers Make Of Cryptocurrency
Over the past years, US lawmakers have shown different stands regarding cryptocurrencies. Some want them banned, while others believe that they can be a tool for change with the proper regulation. Elizabeth Warren is one of the US Senators who criticize these assets publicly.
Her main interest lies in mitigating the assets’ side effects on the economy and other sectors of human interaction. Even though not all Senators back her frequent efforts of grilling crypto companies, the house has once hit DeFi. These developments show that the Lawmakers are open to any crypto regulation strategy but would like to make it safer for the world before adoption.
What to Expect In the Upcoming US Crypto Regulation Framework
The US is still in the process of figuring out how to regulate cryptocurrencies best before legal adoption. They have made many efforts like allowing and rejecting trading of some crypto products. However, their plan is to maintain their financial power while protecting their investor.
If this is the case, several things may feature in the upcoming executive order and a later regulatory framework. The regulatory bodies will have a uniform voice, and power may be distributed to each or centered to a uniform task force. The regulatory framework will seek to reduce the anonymity of cryptocurrency by tightening the KYC requirements of traders.
The government will also require reports from exchanges after licensing them. Therefore, investors should comply with stricter requirements and trading rules, including taxes to trade crypto in the US.
The US is one of the countries globally that have a large influence on the policies made by the others. Therefore, the incoming crypto regulatory reports are among the most awaited ones globally.
However, investors should be ready to comply with stricter regulations that may cause some discomfort in their ‘freedom’ in the crypto space. Some of the almost certain things are stricter KYC requirements, taxes, and anti-corruption measures.
Interested parties and investors at large should brace themselves since no one knows how the whole market will be affected. Additionally, every crypto enthusiast should watch the US regulation developments closely since it might change the market entirely.