The long-awaited crypto regulatory framework released by President Joe Biden’s Treasury Department this month attempted to outline a plan to regulate the growing crypto industry. Unfortunately, the department’s review failed to include more content than a mission statement.
While the Biden administration appears to be taking a “whole-of-government approach” to regulating the decentralized finance (DeFi) sector and its impact on the traditional economy, the main focus is on avoiding negative events — such as financial crimes — and failing to facilitate positive events, such as the wealth-building opportunities that crypto presents to Americans, from the traditional big banking system. .
The new framework follows Biden’s executive order in March, titled “Ensuring Responsible Development of Digital Assets.” Authorities have focused primarily on prosecuting money laundering and Ponzi schemers. This comes as no surprise, considering that crypto dominoes fell during the summer months. These include the collapse of Terraform Labs, which led to the arrest warrant for Interpol founder Do Kwon. Loss of Celsius Network; And the collapse of crypto prices.
However, these events served the healthy purpose of bringing out bad actors who were in the crypt for criminal or personal gain. An effective set of rules that prevent illegal activity and promote peer-to-peer money transfers will do wonders for crypto’s public perception. Biden’s framework, which is more reactive than proactive, won’t achieve that.
Related: Biden is hiring 87,000 new IRS agents — and they’re coming to you.
As a nation, we don’t communicate much these days. We mostly want the United States to remain the world’s economic superpower, but we differ on how to do that. Stablecoins and other cryptocurrencies break the power of federal funds and allow individuals to accumulate wealth independently, which is why the federal government doesn’t like them.
Biden’s framework literature suggests that digital currency is key to securing America’s future economic leadership. But if he gives authority over crypto to the same authorities who exercise authority over traditional finance, the status quo will not change. Instead of creating a “digital twin” of the US dollar, it would be better for the government to find a way to coexist with alternative currencies.
The White House proposal is a disgrace.
– A clear attack on job certification, showing that they set environmental standards for mining.
– FedNow push on crypto
– Treating everything as a fraud or threat
– Advice on volatility and consumer risk
— Wolf of All Streets (@scottmelker) September 16, 2022
Even if we can’t agree on how to solve cryptocurrencies, it’s time to go beyond implementing existing regulations to establish new programs to bring blockchain technology to the areas that need the most disruption, such as healthcare and big business.
For example, keeping medical records on a blockchain – as Estonia’s most advanced e-health system already does – will streamline and secure every person’s health information from birth to death, with every doctor or pharmacist using the right history along the way to make the most of it. Decision. Collecting anonymized, uncorrupted medical data leads to better research, better treatment, and more cost-effective health care.
Related: Cryptocurrency is taking off as a tool of tyranny.
Likewise, putting property and business records on the blockchain will result in greater accountability for large, vaguely benevolent and sustainable corporate claims. Such transparency allows consumers to make more informed decisions about who they buy from — and bank with.
The federal government is also nurturing blockchain technology by investing in large-scale blockchain projects and encouraging companies that use it to better serve the public.
Let’s hope that in the future, both the federal and state governments will work together to write real crypto industry legislation to not only mitigate the damage, but also enhance its potential. Cryptocurrencies and other digital assets have the potential to bring wealth-building opportunities to unbanked Americans, break up monopolies, and hold wealthy goliaths accountable for their businesses on an unprecedented scale. Biden’s framework is a lukewarm start, but we have a long way to go.
Guy Gotluck He is the president and founder of the CryptoIRA platform My Digital Money (MDM). He holds an MBA in Computer Science and Engineering from UCLA, Northwestern University.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.