American Treasury Secretary Scott Bessent has stated that the government is looking to remove regulatory barriers hampering the adoption of Bitcoin and other cryptocurrencies in the country. He said:
“We will take a close look at regulatory impediments to blockchain, stablecoins, and new payment systems, and we will unleash the awesome power of the American capital market. Americans deserve a financial services industry that works for all Americans, including and especially the mainstream….”
The current US government, under President Donald Trump, has recently completed 10 months in office and is looking to introduce new legislation that can improve crypto adoption and trading in the country. Trump himself has stated that he wants the US to be the world leader in AI and crypto and has expressed his desire to act quickly on this key electoral promise.
US Government Moves to Improve Crypto Regulation
This includes the GENIUS Act passed back in July. The legislation took the following crucial actions:
- Established the first federal regulatory framework for stablecoins, including reserve requirements for stability.
- New requirements for issuers to enable seizure, freezing, or burning of tokens for lawful orders (e.g., sanctions enforcement).
- Helped improve the Treasury’s tools against money laundering and sanctions evasion
The GENIUS Act was swiftly followed by the CLARITY Act, which has cleared the first hurdle in the House of Representatives, but it is currently pending a full Senate passage.
The CLARITY Act is crucial for enhancing regulatory clarity regarding digital currencies, categorizing them as digital commodities, and subjecting them to the jurisdiction of the Commodity Futures Trading Commission (CFTC).
The authority of the Securities and Exchange Commission (SEC) will be limited in the crypto scene under CLARITY, much to the delight of the crypto community. However, it is not yet enforced.
The Future
While the US government has taken some important steps to reduce the regulatory burden on crypto users and companies alike, the crypto market desires further action. There is also criticism from some sections that these recent developments are designed in a way to help Trump and some of his donors get into crypto easily and profit from it. Other measures, like the all-important Bitcoin Strategic Reserve, have taken a backseat for now.
Nonetheless, this is still the most pro-crypto US government in history and is looking to make lives easier for everyone involved in the digital currency economy. It remains to be seen how much further it can go before regulatory hawks swoop in and put a stop to the proceedings.
Source: https://zycrypto.com/government-removing-barriers-for-bitcoin-and-crypto-us-treasury-secretary/
