Despite the rise in popularity of many different cryptos, and continued adoption through crypto trading platforms, the US still seems hesitant to enact solid legislation.
On Wednesday of last week, a major financial regulator for the Securities and Exchange Commission (SEC) in the US boldly stated that the country was “falling behind the curve” when it came to the US creating clear and pragmatic framework for the implementation of cryptocurrencies across the board. This comes in light of nearly every other developed nation on the planet putting forward concise regulatory scaffolding for what is obviously becoming the new normal in finance.
How governments plan to coordinate and regulate a Crypto platform is perhaps the most important step in creating access and fostering further adoption for blockchain technologies and digital currencies— something the US has barely looked at since 2017. While other countries, like Japan, the European Union, and their neighbour to the north have all taken a much more proactive approach to integrating crypto technologies with their indwelling national currency systems. Which means that the US could be left out when it comes to future innovations and adoption technology.
Growing Global Adoption
At the beginning of the month, the UAE announced that it would begin allowing crypto payments for certain government-backed remittance schemes, like those pertaining to free trade zone business licenses and fees associated with visas. Deutsche Bank, a booming voice in the European centralized banking system, has been pushing hard for more clear regulation regarding cryptos and their associated platforms since last Fall. China has gone as far as to roll out their own digital Yuen, and countries like Venezuela and Nigeria can’t stop the influx of crypto platforms usage, despite their concerted back-peddling.
Countries around the world are beginning to roll out favorable legislation and clearer rules regarding how cryptocurrencies and their associated technologies will be integrated into the financial landscape of the future. With big hitters across Europe and Canada digging in to make way for the influx of institutional interest that has been cresting of late. America, on the other hand, is still seeming to bide their time— refusing to take a closer look at where cryptos could sit in future financial systems. Despite the country being one of the biggest adopters and promoters of digital currencies.
America Takes it Local
A Miami city commissioner seemed to be taking a leaf from Europe’s playbook, pressing for the quick implementation of crypto use within Florida’s state borders. Francis Suarez, mayor of the city of Miami, held a vote vying for the ability to use crypto for city service remittance and city workers salaries. While the local law was shot down by voters, the forward-thinking local politician was able to convince his constituency to implement education and further research into future investments in crypto.
Above the local level however, the United States congress has passed an initiative that allows for its members to receive campaign contributions in Bitcoin— finally allowing federal level government employees to interact with blockchain technologies and the tokens that underlie them. However, instead of using this forward momentum to further strengthen cryptos as legitimate currency and remittance systems, the US seems to only be focusing on crypto as an investment strategy. A tactic that is seemingly in stark opposition to many of the massive financial institutions that are creating infrastructure that would allow cryptos to be freely traded and used as forms of payment.
Companies like Visa, MasterCard, PayPal, and Square have all already begun to create portals within their payment systems that would support cryptos— not necessarily as an asset, but instead functioning similarly to legal tender.
Where the Crypto Platform Stands
Despite the institutional interest in crypto as a remittance system, lawmakers in the US still seem to refuse to view digital currencies as anything but an asset. Which means that it is still difficult to use as anything but a speculative tool. While crypto legislation has ramped up from earlier years, with more laws regarding how crypto platforms can operate and how they are expected to interact with their customers, there is still little guidance on how to use them as a form of payment.
Many federally insured banks across the nation still disallow account holders to purchase crypto, through crypto platforms, with their debit cards or bank transfers, which is serving to stall these use-case scenarios that are seen to be thriving in so many other countries across the world. Which could reasonably see the US left behind as other well-developed nations press forward into the crypto financial space.