USA (Washington Insider Magazine)— The United States government is moving away from its previously aggressive stance towards cryptocurrencies, opting instead for a more diplomatic approach. This shift signals a growing receptiveness to participants in the crypto industry.
Engaging with Industry Leaders
A report from The Block reveals that the current US administration is actively engaging with cryptocurrency industry leaders to discuss “politics and the crypto community.” This outreach aims to better understand the industry, its participants, and the broader community.
Political Considerations
Individuals familiar with the situation, who requested anonymity, noted that this change in tone comes as the US approaches a new electoral cycle. Actions related to the cryptocurrency industry could potentially affect the election outcome, leading the government to adopt a more conciliatory approach, according to Bit2me,.
Growing Political Significance of Cryptocurrencies
Grayscale Investments Report
Grayscale Investments, a digital asset investment business, has released a research on the growing political impact of cryptocurrencies in the United States. According to the report, 77% of American people believe politicians will be more open to cryptocurrencies, recognizing its potential.
Government’s Changing Stance
The Block reports that the US government’s shift in stance has been noticeable over the past two weeks. The administration is beginning to acknowledge the growing importance of cryptoassets and their potential impact on upcoming elections.
Legislative Developments
Senate Approval of HJRes.109
In mid-May, the Senate approved bill HJRes.109, aimed at repealing Special Accounting Bulletin No. 121 from the Securities and Exchange Commission (SEC) concerning digital asset custody. This bill is viewed as an opportunity to bolster the United States’ leadership in the crypto and blockchain sectors, enabling banks and regulated financial institutions to offer crypto asset custody services.
Presidential Response
However, the Senate approved bill HJRes.109, President Joe Biden threatened to veto the legislation, sparking backlash from the crypto community. A week later, Congress passed the FIT21 bill, designed to establish a STRONG regulatory framework for cryptocurrencies without hindering technological innovation.
Towards a Collaborative Regulation
While the administration has expressed reservations about the FIT21 bill, the White House has shown a willingness to engage in discussions with crypto industry participants. This marks a departure from the previous threat of a veto, indicating a preference for developing clearer and more favorable regulations for digital assets.
Conclusion
The US government appears committed to maintaining open communication with the cryptocurrency industry, aiming to resolve current disagreements and foster a safe, reliable, and prosperous digital asset ecosystem.
