In a major boost to the global crypto economy, the United States announced its intentions to embrace decentralized finance along with crypto adoption and blockchain. This decision is great for the further development of cryptocurrencies and the implementation of their underlying blockchain technology.
SEC’s Affirmative Stance in Crypto Adoption
Gary Gensler, the US Securities and Exchange Commission Chair, confirmed the regulator’s stance of not banning cryptocurrency on October 6. The address was issued in between a House Committee on Financial Services meeting. The MIT cryptocurrency professor’s statements set off huge positive signals for the world’s biggest economy in blockchain and DeFi domains as well.
As per Gensler, banning cryptocurrency is not a solution and falls not under the SEC Mandate but the US Congress. He stated, ”It’s a matter of how we get this field within the investor consumer protection that we have and also working with bank regulators and others — how do we ensure that the Treasury Department has it within Anti-Money Laundering, tax compliance.”
A Positive Shout-out from the US Fed Reserve
The cryptocurrency community had previously received another positive outcome from US regulators through a Congress testimony. Long-term crypto advocate and Congressional Blockchain Caucus member Representative Ted Budd questioned whether the US Federal Reserve intended to limit or ban cryptocurrency use on September 30. The Federal Chair Jerome Powell replied empathically, “No. [I have] no intention to ban them.”
Global Impact of US Crypto Adoption
The aforementioned developments do not only mean that the US government will allow cryptocurrency. Rather, it also indicates US’s intentions to help in growth and cooperate with discussion talks and processes for better regulation. In addition, an endorsement from the world’s largest economy immediately grabs attention.
HashCash Chief and blockchain pioneer Raj Chowdhury stated, ”Allowing digital assets to survive and thrive in US’s present financial machinery with proper regulation would portray a better image for other nations. This will generate significant global interest in cryptocurrencies which in turn will result in newer crypto innovations and job opportunities.”
Effect of Crypto Adoption in US Blockchain Development
The incorporation of digital assets in the current US financial system will allow traditional banking systems to work in synergy with new-age decentralized finance systems. The combination will kickstart a rise in blockchain development systems within the US. Experts already indicate robust growth from blockchain technology as an emerging gamechanger. With the US’s current stance on cryptocurrency, blockchain adoptions will skyrocket in the upcoming days. The World Economic Forum’s July 2021 report also highlights how blockchain implementation can be instrumental in dismantling corruption from government services.
The Regulation Perspective
There are still a lot of things to be done from the regulation perspective. The crypto community and the government need to come together, align their interests and collaborate. It will aid in better decision-making concerning all things associated with crypto- Regulation, Stablecoins, Decentralized Exchanges, Crypto-Based Derivatives, and more.
Bitcoin ETFs have been gaining a lot of news coverage lately. The SEC recently allowed 2 Bitcoin Exchange Trade Futures(ETFs) to commence trading. Proshares and Valkyrie have already gotten the approval. More Bitcoin-based ETFs are likely in the nearby future.
“The latest developments can power the US as a frontrunner in blockchain and fintech development as well as DeFi services such as insurance, trade finance, or fundraising.”, said Chowdhury.
The current US standpoint of adopting blockchain technology and regulating cryptocurrencies including Bitcoin sends a strong geopolitical statement worldwide. This will open the doors for large-scale foreign investment and securing the best talents worldwide. Combined with the fact that US lawmakers and politicians are also investing in digital assets, this is a good time for crypto investors, traders, financial institutions, blockchain developers, and countless other sectors of the US economy.