No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The long-awaited crypto regulatory framework released this month by President Joe Biden’s Treasury Department sought to outline plans for managing the burgeoning crypto industry. Unfortunately, the division’s assessment failed to embody more than just a mission statement.
While the Biden administration appears to be taking a whole-of-government approach to overseeing the decentralized finance (DeFi) sector and its ramifications on the traditional economy, they are primarily responsible for financial crimes and other crimes. Focuses on defense against negative events. It fails to foster positive events such as the wealth building opportunities that crypto offers to Americans excluded from the traditional big banking system.
The new framework was a follow-up to Biden’s Executive Order in March titled “Ensuring the Responsible Development of Digital Assets.” Authorities primarily focused on prosecuting money launderers and Ponzi scheme culprits across jurisdictions. That may not come as a surprise, given that it was developed when cryptocurrency dominoes tumbled over the summer. An arrest warrant has been issued against Kwon. Bankruptcy of the Celsius network. And the collapse of crypto prices.
Nonetheless, these events served a healthy purpose of wiping out bad actors who were using cryptocurrencies for criminal or selfish purposes. An effective set of laws related to cryptocurrencies that prevent illegal activities and facilitate peer-to-peer financial transactions would be surprisingly effective for the public image of cryptocurrencies. Biden’s framework, which is more reactive than proactive, has not achieved that.
Related: Biden is hiring 87,000 new IRS agents.
As a nation, we disagree on many things these days. We want the United States to remain the world’s economic superpower, but we disagree on how to do it. Stablecoins and other cryptocurrencies dismantle the power of the federal currency and allow individuals to accumulate wealth independently. This is exactly why the federal government doesn’t like them.
The Biden Framework literature suggests that digital currencies are key to securing America’s future as an economic leader. But giving power over cryptocurrencies to the same authorities that exercise power over traditional finance would not change the status quo. Instead of establishing a digital twin for the US dollar, governments should find ways to coexist with alternative currencies.
The framework proposed by the White House is shameful.
– A clear attack on proof of work by implying that it sets environmental standards for mining.
– Push FedNow via crypto
– Frame everything as a potential scam or threat
– Highlights volatility and consumer riskAll Street Wolves (@scottmelker) September 16, 2022
Beyond the enforcement of existing regulations, it is time to introduce new programs that integrate blockchain technology into areas that need the most disruption, such as healthcare and large enterprises.
For example, storing medical records on a blockchain, as Estonia’s advanced electronic health system is already doing, streamlines and protects each person’s health data from birth to death, and in the process each doctor or Empower pharmacists to do their best with access to accurate history. decision. Collecting anonymized, uncorrupted medical data leads to better research, better treatments and more cost-effective healthcare.
Related: Cryptocurrencies are featured as tools of tyranny
Similarly, putting assets and business records on the blockchain will increase the accountability of opaque large corporations that make bold claims of charity and sustainability. Such transparency allows consumers to make more informed decisions about who to buy from and bank.
The federal government should also foster blockchain technology by incentivizing companies that invest in large-scale blockchain projects and use it to improve public services.
Going forward, let us hope that both the federal and state governments will work together to create real crypto industry legislation not only to mitigate the damage, but also to facilitate its potential. Other digital assets have the ability to create wealth-building opportunities for large unbanked Americans, break monopolies, and hold wealthy Goliaths accountable for ever-increasing business transactions. Biden’s framework is a lukewarm start, but it has a long way to go.
Guy Gotzrak President and founder of CryptoIRA platform My Digital Money (MDM). He has a degree in Computer Science and Engineering from UCLA and his MBA from Northwestern University.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
