💱 Inventing the Rules
A long-awaited framework for cryptocurrency and digital asset regulation has been released by the White House. The report comes six months after President Joe Biden called for federal agencies to analyze the risks and benefits of the market in a March 2022 Executive Order. CNBC noted that the main priorities of the framework are “consumer and investor protection; promoting financial stability; countering illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.”
Talk of a potential Central Bank Digital Currency (CBDC, or effectively a digital US Dollar) has also been brought up. “You wouldn’t need stablecoins; you wouldn’t need cryptocurrencies, if you had a digital U.S. currency,” Federal Reserve Chair Jerome Powell said of the idea. “I think that’s one of the stronger arguments in its favor.”
The Fed's framework comes as cryptocurrencies and digital assets are undergoing a substantial market correction that has uncovered various ponzi schemes and other scams, including, most notably — TerraCoin.
The Next Buffett?
As the crypto market is in flux, crypto exchange platform FTX and its founder, Sam Bankman-Fried, have ramped up efforts to become the industry's central player by infusing various companies with cash. “We still have a fair bit left to deploy, if and when it’s useful or important,” the so-called “crypto king” said of the billions he’s earmarked for various acquisitions and loans, writes CNBC. Bankman-Fried’s open pockets have led some to compare him to Warren Buffet. Yet, he’s hesitant about the parallels — saying, “First of all, I don’t think Warren Buffett would call me the next Warren Buffett. To the extent there is a parallel recently, it’s been looking at which assets are in a place where they pretty badly need capital.”
As we’ve written here time and time again, the crypto and broader digital assets markets are long overdue for federal regulation. The system has played host to large-scale fraud schemes, money launderers, and other illegal players. A regulated market can only help stabilize and grow the economy.