The United States Treasury has published a statement saying that it wants comments on the benefits and risks of cryptocurrencies. The commentary period will run until Aug. 8.
The United States Treasury is now seeking comments on the benefits and risks of cryptocurrencies, according to a statement. The commentary period will run until Aug. 8, after which the U.S. Treasury will file a report that will be examined by President Biden and his team.
Treasury weighing pros and cons
Titled “Ensuring Responsible Development of Digital Assets,” the document focuses on a multitude of facets related to the crypto market. Chief among these is the protection of consumers, investors, and businesses, which several government agencies have noted as being of the highest priority.
The U.S. also seeks to protect the U.S., global financial stability, as well as the mitigation of systemic risk, illicit financial activity, and national security risks. Regarding the actual allowing of the crypto market to develop, the goals are focused on putting the U.S. in a pioneering position with respect to digital asset innovation, promotion of access to safe and affordable financial services, and the “support of technological advances that promote responsible development and use of digital assets.”
On the top priority of the protection of stakeholders, the statement says,
“The rise in use of digital assets, and differences across communities, may also present disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses,” while providing “safe and affordable financial services experienced by more vulnerable populations.”
The statement is yet another step by the U.S. Treasury to regulate the crypto market. 2022 is looking to be a watershed year for the U.S. in terms of crypto regulation.
US goes full steam ahead on crypto regulation
The United States has long been criticized for its slow approach to crypto regulation. However, the past two years have seen an unmatched acceleration toward crypto regulation. The heavy losses incurred by investors during notable incidents like the UST crash, the fall of high-profile companies like Three Arrows Capital, and the theft of crypto by nation-states like North Korea.
The U.S. has made it clear that it will allow the market to continue developing, but that it must be done in a responsible way — U.S. Treasury Secretary Janet Yellen being among those who hold this position. The agency has also released a framework for international cooperation on crypto regulation, one of its biggest steps yet.
Many countries will look to the U.S. for guidance on regulation. Fortunately, it seems like the country is willing to let the market exist and develop responsibly. Any regulation may have short-term negative effects, but it should do the market well in the long run.
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