The long-awaited cryptocurrency regulatory framework released this month by President Joe Biden’s Treasury Department sought to outline a plan to manage the growing crypto industry. Unfortunately, the department’s assessment embodied no more substance than a mere mission statement.
While the Biden administration appears to be taking a “whole-of-government approach” to overseeing the decentralized finance (DeFi) sector and its domestic effects on the traditional economy, they are primarily focused on fending off negative events, such as financial crime, and not facilitate positive developments such as the wealth creation opportunities that crypto offers to Americans excluded from the traditional big banking system.
The new framework was a follow-up to Biden’s March executive order, titled “Ensuring Responsible Development of Digital Assets.” Officials focused primarily on pursuing money launderers and Ponzi schemes across jurisdictions. This may come as no surprise, given that it unfolded as crypto dominoes tumbled over the summer months. These included the collapse of Terraform Labs, which led to an Interpol arrest warrant for its founder, Do Kwon; the failure of the Celsius network; and the collapse of crypto prices.
However, these events served the salutary purpose of shaking down bad actors who were into crypto for criminal or self-interested purposes. An effective set of crypto-related laws that prevent illicit activities and promote peer-to-peer financial transactions would do wonders for crypto’s public image. Biden’s framework, which is more reactive than proactive, fails to do so.
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As a nation, we disagree today. Most of all, we want the United States to remain a global economic superpower, but we disagree on how to do that. Stablecoins and other cryptocurrencies dismantle the power of federal currencies and allow individuals to accumulate wealth independently, which is exactly why the federal government doesn’t like them.
The literature in the Biden framework suggests that digital currency is key to securing America’s future as an economic leader. But if you give power over crypto to the same authorities that wield power over traditional finance, the status quo will not change. Instead of establishing the “digital twin” of the US dollar, the government would be better off finding a way to coexist with alternative currencies.
The framework proposed by the White House is a fucking disgrace.
– Clear attack on proof of work, implying that they will establish environmental standards for mining.
– Pushing FedNow on crypto
– Framing everything as a possible scam or threat
– Address volatility and consumer risk
— The Wolf of All Streets (@scottmelker) September 16, 2022
It’s time to go beyond enforcing existing regulations and institute new programs that integrate blockchain technology into the areas most in need of disruption, such as healthcare and big business, even if not we can agree on how to approach coins.
For example, keeping medical records on a blockchain (as Estonia’s highly advanced electronic health system already does) would streamline and protect each person’s health data from birth to death, with each doctor or pharmacist along the way accessing accurate history to get the best out of it. decision Collecting anonymous, uncorrupted medical data will lead to better research, better treatments, and more cost-effective health care.
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Likewise, putting property and business records on a blockchain would bring more accountability for large, opaque corporations that make bold claims of charity and sustainability. This transparency would allow consumers to make more informed decisions about who they buy from, and who they bank with.
The federal government should also encourage blockchain technology by investing in large-scale blockchain projects and incentivizing companies that use it to better serve the public.
Looking ahead, we hope that both federal and state governments will cooperate to draft real legislation on the crypto industry, not only to mitigate its harm, but to foster its potential. Cryptocurrencies and other digital assets have the ability to offer wealth creation opportunities to large swathes of unbanked Americans, break up monopolies, and hold wealthy goliaths accountable for their dealings to a degree never seen before. Biden’s framework is a tepid start, but we have a long way to go.
Guy Gotslak is the president and founder of the CryptoIRA My Digital Money (MDM) platform. He holds a degree in computer science and engineering from UCLA and an MBA from Northwestern University.
This article is for general information purposes and is not intended and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.