It's safe to conclude that the United States is one of the world's most crypto-friendly countries. It has the most Bitcoin and Ethereum nodes, and regulatory authorities are particularly interested in the subject. President Joe Biden's administration issued a series of federal reports in September addressing how cryptocurrency might be regulated in the coming year.
According to the Office of Science and Technology, the government is responsible for protecting communities from the negative effects of digital currencies and climate change.
President Biden's Inflation Reduction Act is America's most significant asset in greenhouse gas reductions, clean energy, and climate resilience. It allocates approximately $370 billion for incentives such as green energy tax credits to spur the massive development of renewable energies and further modernize the digitization of the United States.
Utilizing blockchain technology to energy microgrids, according to one report, does have the potential to encourage “techno-socio-economic advancements for the reshaping of the viable energy supply chain" by allowing distributed power resource coordination.
Through its Merge event, Ethereum, the most popular blockchain, recently switched to the more environmentally friendly proof-of-stake (PoS) consensus algorithm. The upgrade improved the network's sustainability and security while also taking steps toward growing its scalability, and the network presently provides an enticing staking yield.
According to a September 2022 report from the Crypto Carbon Ratings Institute, Ethereum's transition from proof-of-work to proof-of-stake has decreased the amount of electricity consumed by the Ethereum network by more than 99.988% and its carbon footprint by more than 99.992%.
This should aid the United States in meeting its climate goals, as explained by the Office of Science and Technology: "a 50% to 52% reduction in GHG emissions by 2030, a carbon-free electricity network by 2035, and a net-zero emissions economy by 2050."
Adoption of cryptocurrency
The market economic downturn has drawn some of the world's largest investment firms to the digital asset space, along with MassMutual and BlackRock, the latter of whom initiated a financial inclusion tracking Bitcoin's price five years after its CEO, Larry Fink, described Bitcoin as an index of money laundering.
Securitize Capital, a digital asset company, plans to tokenize KKR's $491 billion Health Care Strategic Growth Fund II. And in November, Charles Schwab, Citadel, Fidelity Digital Assets, and others will launch the EDX Markets exchange.
Meanwhile, cryptocurrency exchange Coinbase stated in September that it would continue supporting a lawsuit against the Treasury Department, alleging that it went too far in sanctioning the Tornado Cash mixing service.
Creating a central bank digital currency
In July 2022, the Treasury Department's Office for Financial Research issued a working paper investigating the consequences of how a central bank digital currency (CBDC) might impact the overall stability of the banking system. It recognized two ways in which a CBDC could improve financial stability.
NFTs in green
"Artists have always been on the frontline of progressive issues," said John Crain, co-founder, and CEO of nonfungible token (NFT) platform SuperRare, in an interview.” We believe this will be a boon to the crypto art market, and we anticipate it will only help it thrive."
ConsenSys, established by Ethereum co-founder Joe Lubin, announced the launch of one of the first long-term NFT collections on the revised PoS Ethereum mainnet.
The White House recently published a fact sheet highlighting a regulatory system for digital assets to safeguard the public by "issuing guidance, growing compliance resources, and actively pursuing deceptive actors," following Biden's Executive Order on Ensuring Responsible Development of Digital Assets.
The Treasury Department's Office of Foreign Asset Control (OFAC) also updated its guidance for the industry on how individuals and businesses can remain compliant with its restrictions against Tornado Cash. This Ethereum privacy mixer was delisted due to claims that North Korean hackers used it to launder funds. According to the department, people could demand an OFAC license to withdraw Tornado Cash-related funds.
What benefits do being a crypto-friendly country have for businesses and citizens? Will any drawbacks be coming in the future? Let us know your thoughts by sharing this article on social media.