US 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 controlling the decentralized finance (DeFi) sector and its ripple effects on classical economics. However, it focuses heavily on defense against negative events such as financial crimes. Koindeks.com As we have also reported, this framework was a continuation of Biden’s March executive order. Authorities heavily focused on money launderers and Ponzi schemers in their jurisdictions.
Considering the latest happenings in the cryptocurrency space, the work 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. These events, however, succeeded in shaking off those who were wrongful or self-interested. It is thought that a powerful set of crypto-related laws that prevent illegal activities and encourage peer-to-peer financial processes will do wonders for the public image of crypto. But the Biden framework, which is more reactive than proactive according to expert Guy Gotslak, fails to do this.
USA should use Blockchain too
He believes that US stablecoins and other cryptocurrencies could undermine the power of the federal currency. However, according to the expert, the government needs to try to live with cryptocurrencies, and this issue is valuable in order to be in a primary position economically. 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 points to the storage of medical information or the keeping of property and business records on Blockchain. The expert uses the following terms:
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 that both the federal and state governments will collaborate to write actual crypto industry legislation not only to reduce waste but also to 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 that the notification be made more clearly.