A New Era for Crypto Regulations
Last week, federal agencies showcased the results of a six-month deep dive into how the U.S. will regulate digital assets, leading to the unveiling of the first comprehensive crypto framework. This publication, resting comfortably on the White House’s digital shelf, is a critical piece of President Biden’s executive order, promising to influence future policy decisions.
Spotlight on Central Bank Digital Currencies (CBDCs)
At the heart of this document lies a heavy focus on Central Bank Digital Currencies (CBDCs). While the administration seems to have conducted a dissertation-level analysis of policy objectives for a CBDC system, they’ve notably postponed discussion about its underlying technology. Still, the Treasury’s interagency working group—including the Federal Reserve and the National Economic Council—hints at an earnest attempt to keep up in the blockchain race.
Industry Reactions: Glass Half Empty?
The industry’s reception was lukewarm at best. Kristin Smith of the Blockchain Association labeled the framework as “a missed opportunity to cement U.S. crypto leadership.” The overwhelming focus on risks rather than opportunities could leave innovative minds scratching their heads. Sheila Warren from the Crypto Council for Innovation echoed this sentiment, indicating that the guidelines suggest an outdated understanding of crypto. It’s like trying to navigate through a corn maze while wearing blindfolds!
Ethereum’s Upgrade: SEC’s New Interest
Meanwhile, Ethereum’s recent upgrade to proof-of-stake (PoS) tantalizes the SEC’s attention again. SEC Chair Gary Gensler hinted that staking could effortlessly tip cryptocurrencies into securities territory, thanks to the Howey Test. As if crypto needed any more drama! Previously, both the SEC and the CFTC had been snugly in the camp that Ether is more commodity than security. But with Gensler steering the ship, will we see a shake-up?
Thailand’s Crypto Clamps Down
Over in Thailand, officials are preparing for radical policies targeting crypto lending. Following a series of collapses in digital asset lending platforms in 2022, the Thai SEC is looking to ban all crypto platforms from offering any form of deposit or lending services. Bitcoiners in Thailand might soon find it hard to recoup any returns, whether they come from asset value appreciation or a promotional budget. If this doesn’t spark global conversations about regulatory frameworks, what will?
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