ccording to a statement, the United States Treasury is now seeking comments on the benefits and risks of cryptocurrencies. The commentary period will run until Aug. 8, after which they will file a report that President Biden and his team will examine.
USDT Secretary Janet Yellen has said that cryptocurrencies are "a particular concern" due to their potential for illicit use. However, she also acknowledged that crypto assets "could provide legitimate financial services."
In a request for information (RFI) published on the federal government's website, the Treasury said it was looking for feedback on "the risks and benefits of digital assets and their implications for U.S. economic security, including monetary policy, financial stability, consumer protection, taxation, anti-money laundering (AML), and countering the financing of terrorism (CFT)."
The RFI comes as the Biden administration is taking a closer look at cryptocurrency regulation. Earlier this month, the president's working group on financial markets regulatory reform called for greater scrutiny of cryptocurrencies and other digital assets.
“The rise in use of digital assets, and differences across communities, may also present a disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses while providing safe and affordable financial services experienced by more vulnerable populations,” said in a statement.
They are the latest sign that the Biden administration is taking a more active role in regulating the cryptocurrency space. In January, the Treasury's Financial Crimes Enforcement Network (FinCEN) issued new rules requiring cryptocurrency exchanges to collect and verify the identities of their customers. The move was widely seen as a crackdown on anonymous transactions involving digital assets.
The RFI comes as Congress is considering legislation that would provide a framework for regulating cryptocurrencies. The "Cryptocurrency Act of 2021" would create three new categories of digital assets: "securities tokens," "commodity tokens," and "currency tokens." The bill has garnered support from both Democrats and Republicans, but it remains to be seen if it will pass into law.
U.S SEC pressing crypto regulation
The United States is making it clear that it will allow the cryptocurrency market to continue developing, but it must be done responsibly.
The US has also released a framework for international cooperation on crypto regulation, one of its biggest steps yet. This shows that the US is serious about regulating the cryptocurrency market.
In 2018 and 2019, the United States saw an unprecedented acceleration in its approach to cryptocurrency regulation.
This was partly driven by high-profile incidents such as the UST crash and the collapse of companies like Three Arrows Capital, which left investors reeling from heavy losses.
In response, the US government has moved swiftly to enact a series of regulations to protect investors and prevent similar incidents from happening in the future.
It is clear that the US is committed to regulating the cryptocurrency market. This is good news for investors, as it will help to ensure that the market is more stable and predictable. However, it is important to remember that regulation is not a panacea. The cryptocurrency market is still young and volatile, and there are sure to be bumps in the road ahead. But with the US leading the way on regulation, it is hoped that the market will mature and become more stable over time.
What do you think about the US's approach to crypto regulation?