The U.S. Treasury has released a statement asking for feedback on the advantages and dangers of cryptocurrency. The time for comments will end on August 8.
According to a statement, the U.S. Treasury is looking for feedback on the advantages and disadvantages of cryptocurrencies. The U.S. Treasury will submit a report after the comment period closes on August 8 for President Biden and his team to review.
Treasury Assessing Benefits and Drawbacks
The report, titled “Ensuring Responsible Development of Digital Assets,” focuses on many aspects of the cryptocurrency business. According to various government authorities, the protection of consumers, investors, and companies ranks as one of the highest priorities.
Along with preserving global financial stability, the U.S. aims to reduce systemic risk, risks associated with illegal financial activities, and dangers to national security. The objectives are concerned with putting the U.S. in a leading position in virtual currency innovation, advancing the availability of reliable and cheap financial services, and “support of technological advancements that encourage responsible development and the use of virtual currencies” concerning allowing the crypto market to develop.
According to the statement, safeguarding stakeholders is of utmost importance.
“Section 5(a) provides that the increased use of digital assets and digital asset exchanges and trading platforms may increase the risks of crimes such as fraud and theft, other statutory and regulatory violations, privacy and data breaches, unfair and abusive acts and practices, and other cyber incidents faced by consumers, investors, and businesses. The rise in use of digital assets, and differences across communities, may also present disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services experienced by more vulnerable populations.”
The announcement represents yet another effort by the U.S. Treasury to control the cryptocurrency industry. In cryptocurrency regulation, 2022 appears to be a turning point for the United States.
The U.S. Moves Swiftly to Regulate Cryptocurrency
The U.S. has been facing criticism for its sluggish response to cryptocurrency legislation. However, during the last two years, progress toward crypto legislation has accelerated unlike anything else.
Investors suffered significant losses due to events like the UST meltdown, the failure of well-known businesses like Three Arrows Capital, and the theft of cryptocurrencies by state actors like North Korea.
U.S. Treasury Secretary Janet Yellen is one of those who hold this position. The United States has implied that it will permit the market to keep building but that it must be done responsibly. To date, one of the agency’s major moves was the release of a framework for international collaboration on cryptocurrency regulation.
Many nations will look to the U.S. for regulatory guidance. Thankfully, the nation appears ready to let the market exist and flourish properly. Any regulation may have negative repercussions in the short term, but it should benefit the market overall.