Regulations are more important than ever in light of the historic TerraUSD (UST) collapse. As a result, regulatory agencies and government organisations from across the globe are determining how to govern cryptocurrencies and digital assets.
Last week, US Senator Cynthia Lummis revealed through Twitter that the much-awaited crypto bill is likely to be introduced this week. She stated that the proposal’s objective is to incorporate digital assets into the national financial system completely.
Notably, Lummins has been an enthusiastic supporter of cryptocurrencies, and she is one of the primary senators driving the measure forward.
On March 9, President Joe Biden issued an executive order directing the government to evaluate the risks and benefits of crypto assets. In addition, he instructed the Treasury to investigate the optimal strategy to regulate cryptocurrencies.
It seems that things are now coming full circle as governments throughout the globe recognise the necessity to regulate digital assets since it is no longer possible to ban them.
Lummins mentioned in a discussion on Bitcoin & cryptocurrencies last week that:
“It is a very comprehensive bill, it will be filed on June 7th. It includes coins that are commodities, coins that are securities, it includes stablecoins, it includes a discussion about CBDCs, consistent with what we heard earlier and a small nod to NFTs.”
She further added:
“It includes algorithmic as well as asset backed stable coins. It includes definitions, consumer protection, privacy, taxation, and several other components of the discussion as it relates to all of this, using the existing regulatory framework.”
Her statements made it apparent that the United States is aware of the significance digital assets will play in the future. As a result, the government is attempting to pass a comprehensive bill to fix the situation.
She even cited Michael Saylor, the founder of Microstrategy, as having contributed to helping everyone on the committee see things objectively.
Is the future bright for digital assets?
Digital assets are sweeping the globe and altering the global financial and economic environment. The United States has the largest crypto-investor base in the world.
Recognizing that digital assets will soon become mainstream, institutional investors are already investing in this market, indicating additional expansion.
As institutional money begins to stream in, the digital asset market is poised for exponential growth, bringing new investment and security threats.
The introduction of conventional banks into this area and the advent of central bank digital currencies (CBDCs) give this new asset class a much-needed legitimacy boost.
In addition, regulators will play an essential role in supporting the market’s development moving forward. As the demand from investors for digital assets increases, the necessity for rules and legislation becomes essential.