The best, as well as the worst element about our world is the fact that it’s always dealing with a lot of different forces. Now, having such a diverse dynamic does help in widening our horizons over time, but there are a few notable limitations attached to it. You see, if we dig through the human history for a second, we’ll notice how, time and time again, this dynamic has taken up a rather detrimental form, therefore eventually prompting the world to devise a counter to the said scenario. After much searching, the world would find its answer in dedicated regulatory bodies. With these watchdogs pretty much running the whole show, we finally had a foolproof method to level out the field and protect everyone’s interests under all circumstances. Nevertheless, while a meticulously-defined regulatory framework did address a variety of issues, the concept’s journey so far has been far from a cakewalk. To better understand the said claim, we can take a look at the way technology’s arrival impacted our bid for a more organized global structure. As soon as technology was up and running, it started giving rule breakers all the space they needed to hide their misdoings. This imbalance became even more pronounced once cryptocurrency was thrown in the mix. Suddenly, the same creation, which had promised to be a trusted ally, was threatening to destabilize the entire financial system. Luckily, though, the burgeoning crypto crime has handed out just the wake-up call we needed, and following extensive deliberation, the Biden administration has now officially launched a response.
The White House has finally issued the long-awaited executive order, which talks to country’s ambition of having stronger regulations around cryptocurrency. Unlike what everyone expected, the order doesn’t pose any direct intervention into the current crypto landscape. Instead, the administration’s primary focus zeroes upon the organic development of agencies’ digital currency knowhow. This is validated by two notable directives. The first one basically encourages the commerce department for developing a detailed framework on the subject so “to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies.” However, the second directive is much big of a bombshell. Addressed to multiple agencies, it calls for proper research into the possibility of creating a state-backed cryptocurrency.
“This research, along with the framework we will develop for international engagement and competitiveness, will help ensure we preserve the critical role of the United States in the global financial system,” said a senior White House official.
Apart from the stated orders, US government has also asked Treasury Department and SEC to closely observe the risks and opportunities in relation to cryptocurrency before putting-together a specific set of regulations. All in all, by prioritizing uniformity over instant measures, the administration has made its long-ball strategy quite clear, but how it shakes out under a practical environment is something that remains to be seen.
