The journey of cryptocurrency has been overwhelming.It started with bitcode-prime.live , which was valued at a dollar or even less, but soon the value started to rise.Over the years,many cryptocurrency projects have been there in the United States and Europe, and the regulatory strategies in these two places are often discussed and become the wind vane of industrial development.
While there are nations that have banned cryptocurrencies, there are others that have embraced cryptocurrency, and some have gone ahead to introduce their own.All this shows a positive inclination towards the crypto market.This has also drawn the interest of the investors.
When we are talking about the nations favouring the growth of cryptocurrency, we cannot miss out on the United States of America.The US government is considering cryptocurrency regulations starting with regulatory stablecoins.The initial target for stricter cryptocurrency laws has been “stablecoins,” according to the Biden administration and congressional lawmakers.As the American government tries to clarify the burgeoning cryptocurrency industry, the Wall Street Journal reported that stablecoins are valued as one-to-one with fiat currencies.
What more about it?
Regulation in the crypto market is the first thing that was done to regularize the crypto market in the US.It falls under bipartisan infrastructure bill.
There are several provisions being speculated under this, like expanding the definition of a brokerage, which will now have digital assets under it.This implies that there would be higher taxation work to ensure seamless tracking of the crypto tax evasion.This will increase the workload but will reduce the taxevasioncases.
In addition, there is work going on to enhance the regulation and make the systemhack-free and reduce ransomware attacks.One of the examples of this was the shutting down of the Colonial Pipeline in May 2021.This case caught a lot of attention because the ransom was demanded in the form of Bitcoin.
There is a growing concern about the tracking of cryptos, and this poses a serious threat to the legal authorities. And so, there is a growing need for better control over crypto transactions. Introducing regulation and taxation can be one of the ways to bring in the necessary reforms and help the system become more transparent and safer.
The United States Treasury Department
Additionally, the United States will collaborate with G20 participants to identify possible threats from digital assets, financial stability, and advanced crypto regulation.This will help to confer with participants on macro-financial issues.
Biden administration’s path to digital monetary policy
According to a new survey report, 93% of the more than 8,000 consumers surveyed in the United States said that they would use cryptocurrencies to buy goods in the future, which means that cryptocurrency holders are not just investing. More people want to spend and pay directly through cryptocurrencies.
Cryptocurrency Payments Handbook
Cryptocurrencies are becoming more popular as a form of payment, according to a paper titled Cryptocurrency Payments Handbook.Consumer interest in adopting bitcoins as payment methods is rising.8,008 Americans were surveyed for the study.It was done by persons who had owned cryptocurrency between February 8 and February 23, 2021.And the consumers that consumed cryptocurrency but did not hold any.The report notes that both holders and non-holders are interested in cryptocurrency payments because they are more private and secure than traditional credit card or bank account-based payments, spurring consumers to be more willing to transact in cryptocurrencies, including real estate.
Wrapping it up !!!
For the nascent industry of cryptocurrencies, the importance of regulation is self-evident, especially after the industry has been barbaric for several years.Cryptocurrencies have become a part of the market that cannot be ignored.The scope and intensity of cryptocurrency regulation require great caution.As cryptocurrencies always come alongside blockchain technology, which is hailed as the next generation of internet technology.Too tight regulation inhibits technological innovation, while looser regulation can affect financial stability in the country and even the world.
Despite all the downsides of cryptos, the crytpo investors have shown positive inclination towards it. Owing to the growing popularity of cryptos, countries like China have introduced their digital currency with the name digital Yuan, which you can trade.