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Bill Hagerty, a member of the Senate Banking Committee, introduced legislation to give cryptocurrency exchanges a safe haven from SEC enforcement actions. The Digital Trading Clarity Act of 2022 wants to provide clarity for exchanges and find the classification of digital assets.
Sen. Hagerty outlined the problems that exchanges face amid regulatory hurdles:
“Start-ups are choosing to move overseas to countries with clear regulations in place. The murky waters surrounding crypto regulation in the U.S. force entrepreneurs to set up shop elsewhere.”
Until the United States will stop being uncertain about the regulations surrounding crypto spaces, it is discouraging people from investing in them. If this continues, it could jeopardize America’s leadership in the technology race at a crucial moment.
The senator believes that the legislation, when passed, would provide “much-needed certainty” to crypto businesses. Furthermore, he believes it would improve the growth and liquidity of U.S. cryptocurrency markets.
If the House, Senate, and President approve, the legislation will become law. It is unclear if and when that process will be completed, though.
In the U.S., the federal government studies the implementation of central bank digital currencies. OSTP analyzed 18 design choices of CBDC and outlined the pros and cons. In the future, a permissionless infrastructure may become more proficient and suitable for use in CBDC systems.
The final look and feel of such a CBDC-based system remain up in the air. Industry participants appear to favor a hardware-based approach with an off-ledger infrastructure. However, opting for this route will reduce transparency and accountability, which may be detrimental to the CBDC’s long-term success.