The U.S. Treasury Department claims that the U.S. should work with its global allies to develop global cryptocurrency regulation. This only applies to the global and decentralized asset class, the release said. Additionally, the Treasury Department suggested that the U.S. should lead the discussion around central bank tokens.
The announcement stated:
“Imbalances in regulation, regulation and compliance across jurisdictions create opportunities for arbitrage and increase risks to financial stability and protecting consumers, investors, businesses and markets,”
The Treasury Department included an international regulatory framework and presented it to President Biden on July 7. The proposal also specifies various state departments to work with in preparing global regulation.
U.S. Views on CBDC
The United States already has several stablecoins pegged to the dollar. While China is currently the leading country in developing a central bank Crypto currency (CBDC), the U.S. has been thinking about the idea.
In January 2022, the Federal Reserve (Fed) took its first steps towards developing a CBDC. The Fed emphasized that the introduction of a U.S. CBDC would represent a major innovation for the U.S. dollar.
It will also increase financial inclusion, expand payment methods and speed money transfers. However, the department also addressed several fundamental problems with CBDCs and offered solutions that the community did not like.
At the time, the Fed also called for an international effort on the topic to address all potential risks of a CBDC. The Fed said:
“Such international work should continue to address all issues and challenges posed by Crypto assets, including financial stability; consumer and investor protection, and business risks; money laundering, terrorist financing, proliferation financing, sanctions evasion, and other illegal activities,”
Encryption in America
The United States has one of the highest rates of cryptocurrency adoption in the world. A recent study showed that over 25% of U.S. investors took out loans during the winter months to invest in cryptocurrencies.
According to Gemini’s 2022 Cryptocurrency Report, more than 20% of Americans own cryptocurrencies. Cryptocurrencies are especially popular among high-income households, with nearly 30 percent saying they own various cryptoassets.Adoption rates are also equitably distributed across genders of all races living in the U.S.
The Biden administration is currently experimenting with cryptocurrency regulations on the regulatory front. In early June, government officials hinted that stablecoin legislation could take effect by the end of the year. Meanwhile, some senators are introducing bills to regulate encryption at the national level.
While the government has shown signals of support for cryptocurrency regulation, it has also been affected by the current bear market.
The U.S. Office of Government Ethics issued a legal warning to all government employees on July 7, saying they should not hold any cryptocurrency assets. Meanwhile, states are reconsidering allowing tax payments in cryptocurrencies, as crypto critics are in a bear market.
Source of information: Compiled from CRYPTOSLATE by 0x information.The copyright belongs to the author and may not be reproduced without permission