The U.S. Senate Banking Committee is pushing to finalize the regulatory framework for the cryptocurrency market, aiming to complete it by September of this year.
The hearing led by Senator Tim Scott focused on reducing legal ambiguity and supporting blockchain technology innovation while protecting the dominant role of the USD in the global market.
MAIN CONTENT
Senator Tim Scott is leading the effort to standardize cryptocurrency regulations, with the goal of completing it by September 2024.
Experts and industry leaders emphasize that the transparency of blockchain helps reduce cryptocurrency-related crime to below 1%.
Maintaining the strategic role of the USD requires restructuring the legal framework to adapt to digital financial innovation.
What reasons drive the U.S. Senate's determination to build a regulatory framework for cryptocurrency?
The U.S. Senate views completing the legal framework as a way to protect the sustainable development of the cryptocurrency market and enhance oversight capabilities.
Senator Tim Scott and colleague Cynthia Lummis – who has supported Bitcoin and digital assets for many years – both emphasized the urgency of creating clear rules to maintain the United States' leading position in blockchain technology and Web3 innovation.
"Digital transparency makes tracking assets much easier than non-digital forms."
Senator Tim Scott, 2024
What are the new perspectives from experts on crime and technology in cryptocurrency?
Experts agree that financial crime through blockchain accounts for a very small percentage, under 1%, even lower than the traditional market.
Economist Jonathan Levin stated that investigations into thousands of cases have uncovered and seized illegal assets thanks to the transparency and traceability of Blockchain.
"Illegal activity on blockchains accounts for less than 1% of total transactions, much lower than the traditional market."
Jonathan Levin, Economist, 2024
CEO of the Blockchain Association, Summer Mersinger, warns that the current legal framework based on traditional banking standards may not fit the specifics of cryptocurrency, potentially pushing innovation abroad.
The importance of maintaining the USD's position in global finance through cryptocurrency
Policymakers emphasize that the strength of the USD may be challenged if the U.S. does not timely adapt to digital finance.
Currently, nearly 98% of issued Stablecoins rely on the USD as collateral, illustrating the strong position of the United States in the global market.
On the contrary, if there are no policies supporting innovation, competing cryptocurrencies and other national digital currencies may weaken the influence of the USD.
Rebuttal from a prominent investor regarding the risks and value of Bitcoin compared to USD
Bitcoin investor Lark Davis rebutted the view that Bitcoin is a risky asset by comparing the continuous depreciation of the USD and the extraordinary growth of Bitcoin over the past 15 years.
"The USD has lost 90% of its purchasing power since 1971. Bitcoin has increased over 200 million % in the last 15 years."
Lark Davis, Bitcoin Investor, 2024
This perspective emphasizes the need to accept and adapt laws for cryptocurrency because digital assets may be a more effective solution against inflation than fiat money.
Frequently Asked Questions
1. When does the U.S. Senate plan to complete the cryptocurrency regulatory framework? The Senate Banking Committee aims to finalize the framework by September 2024, led by Senator Tim Scott. 2. What percentage of total transactions is related to cryptocurrency crime? According to expert Jonathan Levin, illegal activity on the blockchain accounts for less than 1%, lower than the traditional market. 3. Why are most Stablecoins based on the USD? The USD remains the global reserve currency, accounting for about 98% of the collateral for Stablecoins, helping to maintain stability and trust. 4. Is Bitcoin a riskier asset than the USD? Investor Lark Davis stated that the USD has lost 90% of its purchasing power, while Bitcoin has grown many times over, proving that Bitcoin is not simply a risk. 5. What are the benefits of building a cryptocurrency regulatory framework? A clear legal framework helps mitigate risk, combat crime, while promoting innovation and maintaining the U.S.'s leading position in the global market.
Source: https://tintucbitcoin.com/thuong-nghi-si-tim-scott-tuong-lai-tien-dien-tu/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
