Turning Tide
Around a month ago we discussed Bidenโs executive order calls for regulation of the crypto industry at large. As a reminder, this regulation called on federal agencies to take a unified approach to regulation and oversight of digital assets by focusing on consumer and investor protection, financial stability, Illicit activity, U.S. competitiveness on a global stage, financial inclusion, and responsible innovation. When it comes to consumer and investor protection and illicit activities, the government is referring to the flurry of hacks and security breaches that have haunted the crypto space. Just last year the government seized $3.6 billion worth of bitcoin related to the 2016 hack of crypto exchange Bitfinex. Beyond hacks, the government looks to regulate financial risk in volatile crypto markets and the exchanges themselves through the SEC. Lastly, on a more international level, the government plans to focus on maybe developing a CBDC and developing the industry to get ahead of countries like China, while also ensuring the climate effect of crypto can be improved.ย
Beyond the U.S, which seems to be somewhere in the middle, some countries have taken more pronounced positions on cryptocurrency. While China has outright banned the currency, the British government โ just last week โ announced they would bring stable coins (digital assets that track the prices of existing currencies like the U.S. dollar) into the local payments regime. Even France has been inclusive to crypto-hosting startups and crypto companies like Binance, who just recently announced a โWeb3 and cryptoโ start-up accelerator program in partnership with the business incubator, Station F. What do you think about cryptoโs varying standings on the global stage, and will the countries embracing the novel economic invention stand to gain in the long run?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.