United States Regulators will be policing cryptocurrency with it’s focus on Stable coins

US Existing Policy on Cryptocurrency

Cryptocurrency has become more prevalent in the global financial landscape. Despite the rise of the asset class, the United States has not yet developed a clear framework to regulate it. The patchwork of regulations across different countries has created uncertainty for investors and regulators regarding the safety and security of cryptocurrencies.

United States regulators are taking a tougher stance regarding the use of cryptocurrency despite having a large number of cryptocurrency investors and Blockchain firms. Crypto currency exchange in the United States fall under the regulatory scope of the Bank Secrecy Act (BSA) And must register under the Financial Crimes Enforcement Network (FinCEN).

The BSA in the US legislation whose primary aim is aimed towards preventing financial institutions from hiding or laundering money. It can be deduced that there is still very high skepticism stance into incorporating Bitcoin exchange traded fund . Canada unlike the United States whom was the first country to approve this Bitcoin exchange traded fund in February 2021.

Recently the Securities and Exchange Commission (SEC) has adopted a much more proactive stance towards cryptocurrency viewing it as security. The SEC won concessions from US regulators in a debate over how to police the volatile market for stablecoins, which have become the subject of intense scrutiny from the country’s financial watchdogs hence clearing a path for the SEC to hammer down into the $131 billion market.

The SEC will gain greater authority to police stablecoins, which have become an integral part of the financial system. The agencies will also urge Congress to pass regulations that would allow the agency to regulate coins like bank deposits at the soonest.

‍