US Authorities Bracing For First Crypto-Currency Regulations As Fiscal Year Concludes

The need for regulation is emerging more from the necessity for government to protect its own interests than those of investors.

By
Kyle Heise
on
September 30, 2021
Category:
Blockchain News

Fiscal Year Coming to An End

Several authorities in the United States are racing toward a regulatory showdown. The US Treasury Department and the Securities and Exchange Commission (SEC) look primed to take action after years of inaction.

The rush towards regulation has been accelerated due to the growing influence of stablecoins. Regulators are concerned that stablecoin developers do not hold enough liquid assets to protect those investing in their products.

“It is important for the agencies to act quickly to ensure there is an appropriate U.S. regulatory framework in place,” stated Nellie Liang, an undersecretary of the Treasury, in a statement from July.

The end of the year should prove to be the time to push for more action. As the fiscal year concludes on September 30th, the Fall will be the opportune time for both the SEC and the Treasury to clarify their shortcomings regarding policy for the upcoming year. Both groups have defaulted to piecemeal policy-making rather than any overarching policy for the whole industry. 

Source

Now that stablecoins are a clear and better alternative to most traditional banking options regarding annual returns, there is a clear challenge to the fiat monetary system controlled by the authorities. The risks of crypto have long been known to investors, and now stablecoins give investors an option to mitigate those risks almost completely. 

“Regulators really start to care more when risks get greater for society,” said Jeremy D. Allaire, the chief executive of Circle, the company that created USD Coin, the second-largest stablecoin in the world. “You naturally see regulators want to come up with ways to address those risks.”


Destructive Efforts Futile?

The rhetoric from the SEC and Treasury obfuscates around the protection of users, whereby their real motives are for protecting themselves and the interests of the government they serve. 

As long as crypto continues to build a separate paradigm outside the influence of state actors, antagonism and decimation will be their modus operandi. The total destruction of the industry, though, could be impossible.

“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Elon Musk said Tuesday, September 28th, at the Code Conference in Beverly Hills, California. 
Source

On the idea of regulation, Musk thinks that no action so far is the best kind of action. Complete laissez-faire is best. 

When asked whether the U.S. government should regulate the crypto space: “I would say: ‘Do nothing.’”

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. He holds bags mostly in Ethererum, Cake, and BSC GameFi projects.

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