The US Treasury is asking for public input on cryptocurrency benefits and risks
The US Treasury Department has issued a statement saying it wants comments on the benefits and risks of cryptocurrencies. The comment period lasts until August 8.
The US Treasury Department is now seeking comments on the benefits and risks of cryptocurrencies, according to a statement. The comment period will run until August 8, after which the US Treasury Department will submit a report that will be examined by President Biden and his team.
Treasury weighs the pros and cons
Entitled “Ensuring Responsible Development of Digital Assets”, the document focuses on a number of facets related to the crypto market. The most important of these is the protection of consumers, investors and businesses, which several government agencies have noted as a high priority.
The United States also seeks to protect the United States, global financial stability, and to reduce systemic risk, illegal financial activity, and national security risks. With regard to the actual development of the cryptocurrency market, the objectives are focused on putting the United States in a pioneering position in digital asset innovation, promoting access to secure and affordable financial services, and “supporting technological advances that promote responsible development. and the use of digital assets. “
On the top priority for the protection of stakeholders, the statement says,
“The increase in the use of digital assets, and differences across local communities, can also pose different financial risks for less informed market participants or exacerbate inequalities. It is crucial to ensure that digital assets do not pose an unnecessary risk to consumers, investors or businesses, while providing “safe and affordable financial services experienced by more vulnerable populations.”
The statement is another step by the US Treasury Department to regulate the crypto market. 2022 looks set to be a watershed year for the United States in terms of cryptocurrency regulation.
The United States is too busy with crypto regulation
The United States has long been criticized for its slow approach to cryptocurrency. However, the last two years have seen an unsurpassed acceleration towards cryptoregulation. The huge losses incurred by investors during notable events such as the UST crash, the fall of high-profile companies such as Three Arrows Capital and the theft of crypto from nation states such as North Korea.
The United States has made it clear that it will allow the market to continue to develop, but that it must be done responsibly – US Treasury Secretary Janet Yellen is among those holding this position. The agency has also issued a framework for international cooperation on crypto-regulation, one of the biggest steps to date.
Many countries will look to the United States for regulatory guidance. Fortunately, it seems that the country is willing to let the market exist and develop responsibly. Any regulation can have short-term negative effects, but it should do the market good in the long run.
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