The US lawmakers are worried regarding cryptocurrency regulations as there is an immediate need to regulate the crypto industry. The SEC commissioner, Hester Peirce, draws lawmakers’ attention towards crypto regulation in SEC’s latest meeting.
Pierce, also known as “Crypto Mom” due to her supportive comments for cryptocurrency, has raised the voice that the US government’s newly elected team should consider creating rules and regulations for digital assets. She stated that urgent actions need to be taken in this area before it’s too late.
The security and exchange commission explores crypto from different angles such as post-trade market situation, the function of retail investors, and market volatility.
Pierce said the entry of new generation in the investing area is a good thing. The “Reddit rally” of GameStop shares have awakened the government officials and emphasized that there should be a need for some new rules. The Congress has summoned Ken Griffin, CEO of Citadel LLC, Vlad Tenev, CEO of Robinhood, and others in the testify session.
During Donald Trump’s four years, the crypto ecosystem remained helpless and vulnerable. The crypto industry had not seen any transparent and authentic crypto bill. Instead, the US regulatory authorities dealing with crypto made things very narrow for crypto-related companies. The SEC filed a lawsuit against Ripple’s top leadership.
The new leadership under Joe Biden may pass new crypto bills in a bid to regulate the industry. But the government has not taken any significant action for the industry. China, emerging economic power, has left the US behind in digital currency. China is experimenting with the central bank digital currency, which is developed in the last few years and distributing them among citizens via various schemes. On the other hand, the work on the US dollar is in the early phases.
Different Countries Different Rules
Different countries have perceived cryptocurrency in different ways. India, the most populated country in the world, has a mixed approach towards cryptocurrency. India’s government does not want private cryptocurrencies, such as Bitcoin and Ethereum, to be flourished in the state. Instead, the Reserve Bank of India (RBI) is working on the development of central bank digital currency. There is a lot of difference between Bitcoin and CBDC: Bitcoin works on decentralized principles while a CBDC is fully centralized.