Cryptocurrencies were made to improve the way we transfer value. It gives financial options to those seeking something better or those excluded from traditional finance. However, the crypto sector’s growth is hindered by regulations or the lack of clarity on approaching this new asset class. So we look up to our lawmakers for a framework that protects consumers without stifling digital assets. It is reassuring to hear that Coinbase CEO Brian Armstrong is set to meet House Democrats, in an apparent effort to create a viable crypto framework. It is also good to hear that presidential Candidate Ron DeSantis is planning to ban Central Bank Digital Currencies (CBDC), crypto’s anti-thesis, if he wins his Whitehouse bid.
Crypto Exchange Top Executive Meets Lawmakers
Coinbase is the largest crypto exchange in the US. Its fate is closely tied up with how crypto will go forward in the world’s largest economy. The prices of digital assets went down when the Securities and Exchange Commission (SEC) sued Coinbase. The government agency accused the platform of selling unregistered securities, which the company denied. Stocks of the company also took a dip due to the lawsuit but recovered when Ripple Lab won its case against the SEC.
Brian Armstrong, Coinbase CEO, is about to meet Republican lawmakers behind closed doors on Wednesday. The meeting will tackle digital asset legislation, which is a much-needed guidance for regulators, investors, and consumers.
Ron DeSantis will Ban CBDC
Who knew that digital assets will be one of the agendas in a presidential candidate’s platform? A crypto advocate and presidential candidate, Ron DeSantis declared that he will ban CBDC if elected to office. This is what he declared at the Family Leadership Summit in Iowan.
“If I am the president, on day one, we will nix central bank digital currency.” – DeSantis 2023
The crypto community knows that CBDCs and crypto are two different things. They are both digital assets, but the similarity stops there. Crypto is not controlled by a central authority. Many cryptocurrencies, like Bitcoin, have a hard market cap, making the assets scarce. This scarcity makes assets rise in value as time goes by. On the other hand, CBDC is controlled by the government and can be minted infinitely. In a dystopian society, CBDC can be used to assert control over the population, by limiting how or when it can be spent. It can also make freezing assets easier.
Crypto’s Future is in the Hands of the People and the Lawmakers They Elect
Crypto is an innovative technology that can help its users. Unfortunately, regulators are seeing it as a threat. If the hostile treatment of crypto is not corrected, this asset class will just flourish in other countries. This would mean that capital that should be invested in the US will just be transferred elsewhere. It also means that consumers will miss out on opportunities that crypto brings. Fortunately, some lawmakers and politicians wish to make things right. In the end, it is up to elected officials to decide if the country will choose innovation or be left behind.
