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Biden’s anemic crypto framework offered us nothing new

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Biden’s anemic crypto framework offered us nothing new

The long awaited regulatory framework for cryptocurrencies released by President Joe Biden’s Treasury Department this month attempted to outline a blueprint for managing the nascent crypto industry. Unfortunately, the departmental assessment failed to embody more substance than a simple mission statement.

While the Biden administration appears to be taking a “whole-of-government approach” to overseeing the decentralized finance (DeFi) sector and its ripple effects on the mainstream economy, they focus primarily on defending against negative events – such as financial crime – and do not facilitate positive events, such as wealth-building opportunities like crypto offers Americans excluded from the mainstream banking system.

The new framework followed Biden’s executive order in March, titled “Ensure Responsible Development of Digital Assets.” Officials have primarily focused on prosecuting money launderers and Ponzi schemers in all jurisdictions. This may come as no surprise, given that it was developed as the crypto dominoes were falling in the summer months. These included the collapse of Terraform Labs, which led to a Interpol arrest warrantt for its founder, Do Kwon; the Bankruptcy of Celsius Network; and the collapse of crypto prices.

Nonetheless, these events served the healthy purpose of shaking off bad actors who were in crypto for criminal or self-serving purposes. An effective set of crypto-related laws that prevent illicit activities and promote peer-to-peer financial transactions would do wonders for the public image of crypto. The Biden framework, which is more reactive than proactive, fails to do so.

Related: Biden is hiring 87,000 new IRS agents — and they’re coming for you

As a nation, we disagree on a lot of things these days. Above all, we want the United States to remain a global economic superpower, but we disagree on how to do this. Stablecoins and other cryptocurrencies dismantle the power of federal currencies and allowing individuals to accumulate wealth independently, which is exactly why the feds don’t like them.

Literature on Biden’s framework suggests that digital currency is key to securing America’s future as an economic leader. But if he grants power over crypto to the same authorities that wield power over traditional finance, the status quo is not going to change. Instead of establishing the “digital twin” of the US dollar, the government had better find a way to coexist with alternative currencies.

It’s time to move beyond enforcing existing regulations and instituting new programs that integrate blockchain technology into areas that need disruption the most, such as healthcare and large corporations, even if we can’t quite agree on how to deal with currencies.

For example, keeping medical records on a blockchain – as Estonia’s highly advanced electronic health system already does – would streamline and secure the health data of every person from birth to death, with every doctor or pharmacist accessing along the way to an accurate history to make the best decision. Collecting anonymized and uncorrupted medical data will lead to better research, better treatment, and more cost-effective health care.

Related: Cryptocurrency becomes an instrument of tyranny

Likewise, placing ownership and business records on a blockchain would lead to greater accountability of large, opaque corporations that boldly claim charity and sustainability. Such transparency would allow consumers to make more informed decisions about who they buy from – and who they bank with.

The federal government should also foster blockchain technology by investing in large-scale blockchain projects and incentivizing companies that use it to better serve the public.

In the future, hopefully both federal and state governments will cooperate to draft real legislation on the crypto industry, not only to mitigate its damage, but to foster its potential. Cryptocurrencies and other digital assets have the ability to provide wealth-building opportunities to huge swaths of unbanked Americans, break up monopolies, and hold wealthy Goliaths accountable for their business transactions to a degree never before. seen before. The Biden framework is off to a lukewarm start, but we still have a long way to go.

Guy Gotslak is the president and founder of the CryptoIRA My Digital Money (MDM) platform. He holds a degree in computer science and engineering from UCLA and an MBA from Northwestern University.

This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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