In the wake of the raging COVID-19 pandemic that has brought the stock market crashing down, unemployment has hit a spike as the government scrambles to bring the rather dire situation under control.
As it stands, government operatives have all their hands full in the face of an unprecedented public health crisis – the U.S. seems to be running out of options as other global powerhouses are also straining to find concrete solutions.
Well, the adage “desperate times require desperate measures” couldn’t hold more truth in the current circumstance as the U.S. government has begun to shift focus to cryptocurrencies and blockchain as a potential solution.
Crypto enthusiasts and the loyal proponents of blockchain have long waited for pieces of legislations to enforce sanity within the industry. This premise holds truth considering that for global adoption to be realized, regulation has to be an ingredient in executing the plan.
Quite obviously, a highly unregulated crypto industry is bound to scare away new entrants with most people being hesitant in terms of getting involved with the technologies. Thus, the U.S. Congress has provided 32 bills that are relevant to cryptocurrencies and blockchain.
What Are the Areas?
In summary, 12 bills are concerned with the application of cryptocurrency in potential criminal activity including terrorism funding, financial crimes and human trafficking.
Thirteen bills address the regulatory aspects surrounding the handling of cryptocurrency and blockchain. Five bills focus on the potential applications of blockchain technology by the U.S. government, while the two newest bills target the idea of a digital dollar.
Specifically, the 32 bills cover the following 4 areas:
- Use of Cryptocurrency in Potential Terrorism, Money Laundering, and Human Sex Trafficking
This is certainly the most important subject matter as far as the bills are concerned. The fact that cryptocurrencies have been used in illicit activities has presented various legal problems as far as crypto adoption is concerned.
Cryptocurrencies have turned out to be a favorite mode of payment within dark web sites. Take the case of the now-defunct Silk Road 1, which relied on bitcoin payments to operate. This, among various other infamous examples, are the reason why cryptocurrencies have been misconstrued to be, entirely, an enabler of criminal enterprises.
The introduction of 12 of the 32 bills is aimed at dealing with this longstanding stigma – proper legislation will go a long way to inhibit illegal applications of crypto. In fact, one of the 12 bills under this area seeks to defend financial entities and crypto exchanges against cybercriminal attacks.
Nonetheless, this may take a long time to be realized considering that criminal activity still thrives within the fiat currency space.
- Regulatory framework and Treatment of Cryptocurrency and Blockchain
The bills under this category focus on the regulatory and tax treatment of digital currencies. Among the bills up in line is titled “Keeping Big Tech Out Of Finance”, which aims to prevent tech organizations like Facebook from engaging in financial activities within the crypto industry.
The fact that Facebook came under fire for its Libra project reflects the government’s attitude in this context.
- Promoting the Use of Blockchain Technology by the U.S. Government
This item accounts for 16% of all the 32 bills with the U.S. Congress making a consideration for possibilities surrounding the use of blockchain outside the precincts of cryptocurrency. This aspect presents exciting opportunities for the industry considering the expected spike in blockchain adoption amid government-backed research. A specific bill touches on the application of blockchain technology in advancing hospital data security.
- U.S. Central Bank Digital Currency
This element examines the significance of creating a central bank digital currency that would present a number of benefits to the U.S. financial system. Apart from realizing better efficiency as far as financial transactions are concerned, it has been observed that such a digital currency will prove useful in times of crises when fiat currencies plummet in value.
In the wake of the raging COVID-19 pandemic that has brought the stock market crashing down, unemployment has hit a spike as the government scrambles to bring the rather dire situation under control.
As it stands, government operatives have all their hands full in the face of an unprecedented public health crisis – the U.S. seems to be running out of options as other global powerhouses are also straining to find concrete solutions.
Well, the adage “desperate times require desperate measures” couldn’t hold more truth in the current circumstance as the U.S. government has begun to shift focus to cryptocurrencies and blockchain as a potential solution.
Crypto enthusiasts and the loyal proponents of blockchain have long waited for pieces of legislations to enforce sanity within the industry. This premise holds truth considering that for global adoption to be realized, regulation has to be an ingredient in executing the plan.
Quite obviously, a highly unregulated crypto industry is bound to scare away new entrants with most people being hesitant in terms of getting involved with the technologies. Thus, the U.S. Congress has provided 32 bills that are relevant to cryptocurrencies and blockchain.
What Are the Areas?
In summary, 12 bills are concerned with the application of cryptocurrency in potential criminal activity including terrorism funding, financial crimes and human trafficking.
Thirteen bills address the regulatory aspects surrounding the handling of cryptocurrency and blockchain. Five bills focus on the potential applications of blockchain technology by the U.S. government, while the two newest bills target the idea of a digital dollar.
Specifically, the 32 bills cover the following 4 areas:
- Use of Cryptocurrency in Potential Terrorism, Money Laundering, and Human Sex Trafficking
This is certainly the most important subject matter as far as the bills are concerned. The fact that cryptocurrencies have been used in illicit activities has presented various legal problems as far as crypto adoption is concerned.
Cryptocurrencies have turned out to be a favorite mode of payment within dark web sites. Take the case of the now-defunct Silk Road 1, which relied on bitcoin payments to operate. This, among various other infamous examples, are the reason why cryptocurrencies have been misconstrued to be, entirely, an enabler of criminal enterprises.
The introduction of 12 of the 32 bills is aimed at dealing with this longstanding stigma, proper legislation will go a long way to inhibit illegal applications of crypto. In fact, one of the 12 bills under this area seeks to defend financial entities and crypto exchanges against cybercriminal attacks.
Nonetheless, this may take a long time to be realized considering that criminal activity still thrives within the fiat currency space.
- Regulatory framework and Treatment of Cryptocurrency and Blockchain
The bills under this category focus on the regulatory and tax treatment of digital currencies. Among the bills up in line is titled “Keeping Big Tech Out Of Finance”, which aims to prevent tech organizations like Facebook from engaging in financial activities within the crypto industry.
The fact that Facebook came under fire for its Libra project reflects the government’s attitude in this context.
- Promoting the Use of Blockchain Technology by the U.S. Government
This item accounts for 16% of all the 32 bills with the U.S. Congress making a consideration for possibilities surrounding the use of blockchain outside the precincts of cryptocurrency. This aspect presents exciting opportunities for the industry considering the expected spike in blockchain adoption amid government-backed research. A specific bill touches on the application of blockchain technology in advancing hospital data security.
- U.S. Central Bank Digital Currency
This element examines the significance of creating a central bank digital currency that would present a number of benefits to the U.S. financial system. Apart from realizing better efficiency as far as financial transactions are concerned, it has been observed that such a digital currency will prove useful in times of crises when fiat currencies plummet in value.
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