Biden’s anemic crypto framework offered us nothing new

Biden's anemic crypto framework offered us nothing new

The Treasury Department released the long-awaited framework for cryptocurrency regulation this month. It attempted to provide a blueprint for managing the rapidly growing crypto industry. The department’s assessment was not more than a mission statement.

Biden’s administration seems to be using a “whole of government approach” to overseeing decentralized finance (DeFi), and its ripple effects on traditional economies. However, they are primarily focused on protecting against financial crime and failing to facilitate positive events such as wealth-building opportunities offered by crypto to Americans who are not part of the traditional big-banking system.

This new framework was developed as a follow up to Biden’s March executive order titled “Ensuring Responsible Develop Digital Asset.” Officials primarily focused on prosecuting money-launderers and Ponzi schemesrs in all jurisdictions. It may not surprise that this framework was created as crypto dominoes collapsed over the summer months. These included the collapse and arrest of Terraform Labs founder Do Kwon by Interpol; the bankruptcy of Celsius Network; and the fall of crypto prices.

These events had the positive effect of removing bad actors from crypto, whether they were criminals or for their own selfish ends. A set of effective laws that regulate crypto would make crypto more attractive to the public. They would prevent illicit transactions and encourage peer-to-peer financial transactions. Biden’s framework, which is reactive rather than proactive, does not achieve this.

Related: Biden hires 87,000 new IRS agents. They’re coming to you

We don’t all agree as a nation these days. While we want the United States to be a global economic superpower in all aspects, our opinions differ about how to achieve that goal. Stablecoins, and other cryptocurrency, dismantle federal currencies and allow individuals and families to accumulate wealth on their own. This is precisely why the federal government doesn’t like them.

According to the Biden framework literature, digital currency is crucial for America’s economic future. The status quo will not change if the government grants crypto control to the same authorities that have power over traditional finance. Instead of creating the U.S. Dollar’s “digital twin”, the government should find a way to coexist alongside alternative currencies.

The White House’s proposed framework for mining is a disgraceful fucking scheme. – A clear attack on proof of work by suggesting they will establish environmental standards for mining. Pushing FedNow to Crypto – Framing all as a threat or scam – Harping volatility and consumer risk
— September 16, 2022, The Wolf Of All Streets (@scottmelker).

It is time to go beyond the enforcement and implement new programs that integrate Blockchain technology into areas most in dire need of disruption.

A blockchain would allow for the storage of medical records, such as Estonia’s advanced e-health system, which would streamline and protect each person’s data from birth to death. Each doctor and pharmacist can access a complete history to help them make the right decision. Anonymized, uncorrupted data will lead to better research, better treatment, and better health care.

Related: The rise of cryptocurrency as a tool for tyranny

Similar to the above, placing business and property records on a Blockchain would increase accountability for large, opaque corporations making bold claims about sustainability and charity. This transparency would enable consumers to make better decisions about where they shop and who they bank with.

The federal government should encourage blockchain technology through large-scale investments and incentives for companies that use it to better serve society.

Let’s all hope that both the federal and state governments work together to create real legislation for crypto industry, not only to reduce its harm but also to maximize its potential. The potential of cryptocurrencies and digital assets to create wealth for large swathes of Americans, break down monopolies and hold wealthy Goliaths responsible for their business dealings in a way never before seen, is what cryptocurrency and other digital assets can do. Although the Biden framework is a modest start, we still have a lot of work to do.

Guy Gotslak, the founder and president of CryptoIRA platform My Digital Money is Guy Gotslak. He has a degree from UCLA in computer science and engineering, as well as an MBA from Northwestern University.

This article is intended for informational purposes only and should not be construed as investment or legal advice. These views, thoughts and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.

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