Leaders of the Republican Party are expected to push through bills on stablecoins, the structure of the cryptocurrency market, and central bank digital currency (CBDC) in mid-July during the campaign named "Crypto Week."
The U.S. government is focused on completing the legal framework to control and develop key areas of cryptocurrency, including stablecoins, the organization of the crypto market, and CBDCs – digital solutions considered the future of the digital financial system.
MAIN CONTENT
The Republican Party is preparing to enact laws on stablecoins, market structure, and CBDCs in the second half of July.
"Crypto Week" is a campaign aimed at promoting synchronized and transparent regulations in the cryptocurrency market.
The completion of legal frameworks is expected to enhance stability and sustainable development of the digital financial ecosystem in the United States.
What is Crypto Week and what are the goals of this campaign?
"Crypto Week" was announced by the leaders of the Republican Party to be a special campaign aimed at passing bills related to cryptocurrency, including stablecoins, the structure of the cryptocurrency market, and CBDCs. The goal is to create a clear legal framework, minimize risks, and enhance transparency in the cryptocurrency market.
This campaign is a turning point in building the cryptocurrency ecosystem in the United States with the participation of legal, technical, and financial experts to protect users and support innovation.
The impact of the stablecoin bill on the cryptocurrency market
The stablecoin stabilization bill is expected to supplement regulations to ensure sustainability and control financial risks. Prioritizing the regulation of stablecoins is necessary because this asset class is directly related to liquidity and large-scale transactions.
Financial expert Elena Gonzalez, Director of Financial Analysis at the Monetary Research Institute in 2023, stated: "Clear regulations on stablecoins will help mitigate systemic risks and enhance investor confidence in the market." Currently, many price fluctuations and frauds related to stablecoins have prompted the government to take proactive actions.
Why does the structure of the cryptocurrency market need to be specifically regulated?
The structure of the cryptocurrency market related to trading, clearing, and settlement needs to be standardized to ensure transparency, prevent manipulation, and protect investors. The proposed bills will set operational standards for exchanges and market partners.
Regulating the structure of the cryptocurrency market is a necessary step to create a better ecosystem, compliant with traditional financial regulations and protecting users.
John Matthews, CEO of Global Insight Blockchain Analytics, speaking in April 2024
CBDC – Central Bank Digital Currency: Importance and Prospects
CBDCs are seen as the future of digital finance, helping to enhance payment efficiency and the oversight capabilities of central banks. The CBDC bill will facilitate the development of an official digital currency with high security and transparency.
According to the 2023 report from the Federal Reserve Bank of the United States, the research and testing of CBDCs aim to promote financial innovation while controlling systemic risks.
CBDCs are not only a payment tool but also a key to financial innovation in the digital age.
Lillian Chen, Vice President of the Federal Reserve Bank of New York, speaking in 2023
The timeline and expectations regarding the effectiveness of the proposed bills
According to the plan, related bills will be presented and discussed in mid-July 2024. The expectation from legal and financial experts is that these laws will create a safe legal environment, support the development of legitimate cryptocurrency projects, and minimize risks for individual investors.
Frequently asked questions
1. Why do stablecoins need to be strictly regulated?
Poorly managed stablecoins can cause liquidity risks and spillover effects on the financial market; thus, regulation helps protect users and maintain market stability.
2. How do the cryptocurrency market structure bills affect investors?
They help ensure transparent transactions, prevent fraud and manipulation, and increase safety for investors on cryptocurrency exchanges.
3. What advantages do CBDCs have over other cryptocurrencies?
CBDCs issued by central banks have clear legal status, stability, and are backed by the government, unlike freely traded Tokens or Coins.
4. When can the cryptocurrency bills officially take effect?
The bill is expected to be reviewed and passed in July 2024, after which there will be an additional implementation and testing phase at regulatory agencies.
5. How will the development of CBDCs affect the financial system?
CBDCs help enhance payment efficiency, reduce transaction costs, and strengthen financial risk control in the digital economy.
Source: https://tintucbitcoin.com/dang-cong-hoa-tuyen-bo-tuan-crypto/
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