TL;DR Breakdown
- The United States crypto crackdown by the SEC and the present stringent rules have called into question the future of digital assets in the United States of America.
- Money laundering schemes have taken the stage in the digital asset industry in the last few years, leading to crypto’s association with illegal trade.
- The 2024 US presidential election sheds light and attention on crypto and the regulation of the industry.
Description
One of the most pertinent questions around crypto assets is, will these digital assets still be around in the future? Will the assets ever amount to something, or will regulation finally push them offshore? For most crypto enthusiasts, the technology is here to stay. However, there are still more questions than answers, even as investors … Read more
One of the most pertinent questions around crypto assets is, will these digital assets still be around in the future? Will the assets ever amount to something, or will regulation finally push them offshore? For most crypto enthusiasts, the technology is here to stay. However, there are still more questions than answers, even as investors try to find relevant price predictions to enable them to make financial decisions as technology evolves.
Given the skyrocketing gains and the dramatic losses, the collapse of various exchanges in the previous year, regulation concerns, and the influential digital assets skeptics such as the USA former president, Donald Trump, the future is not exactly promising for digital assets.
Crypto economic stand in the US
Kristin Smith, in her speech on the Blockchain Association’s fifth anniversary, stated that when the association was launched, the obvious question was whether this form of technology would be convincing enough for Congress and regulatory bodies such as the Security Exchange Commission to allow the assets to be used as trade currencies in the United States.
The CEO added that most concerns in Wahington, DC, at the time were around whether the asset was here to stay rather than tougher questions on market structures, taxation of digital assets, protection of the digital assets codes in the US Constitution, and formulation of legislation or policies that regulate digital assets in the markets.
Even as digital assets face this turbulence, crypto adoption continues to grow. Several presidential aspirants have voiced their support for the domestic crypto industry. Joe Biden is no exception who made an executive order urging the Fed to study the digital assets’ underlying technology and make necessary recommendations.
As the association celebrates its fifth anniversary, it is imperative to reflect on the gains it has made so far and what the future looks like for digital assets. It may be close to impossible to make solid predictions given the dramatic moments the industry has seen in the last five years. However, three areas still remain of interest that may dictate the industry’s success in the coming years.
Money laundering concerns
The biggest concern facing the industry right now is the money laundering issue. Federal agencies have been at the front line in the fight against bad actors who take advantage of technology to advance their illegal activities.
This has become a significant concern for governments everywhere, which could lead to more resistance from regulation authorities globally. While various recommendations have already been forwarded to curb the laundering concerns of services such as the Tornado cash, this issue could still cause altercations with the commission in the coming years.
Pro-crypto thinkers and the crypto-specific bills in both houses
The other factor is getting both houses to pass legislation on crypto assets. Pro-crypto thinkers were right to celebrate the passing of several crypto bills in the committees. However, the fight is not yet over, as there is no common ground between the House and the Senate about the industry’s regulation.
Only time will tell which bills will make it past both houses. Even as more crypto champions are voted into Congress, much work is still needed to ensure a wholesome change in the legislators’ view toward this technology. Encouraging pro-crypto thinkers to enter Congress to be at the regulatory forefront and change the dominant mindset against the assets is also important.
The Presidential Election 2024
Cathie Wood and Balaji Srinivasan have termed the election on the horizon as the Bircoin election. As more political actors take an interest in digital assets, Bitcoin and crypto assets are increasingly becoming relevant to the US elections. Early presidential aspirants have already begun sharing their opinions on the technology.
The president’s views on crypto are important since they are responsible for appointing the heads of federal commissions, such as the SEC and CFTC, who have a direct influence on the crypto industry. For instance, Donald Trump has been vocal in his ‘Bitcoin is a scam’ campaign, a statement that has met resistance from the Republicans. At the same time, RFK Jr believes Bitcoin is a significant innovation engine and has showcased his support by accepting Bitcoin donations.
Digital assets have experienced significant disruptions over the years; even as the SEC cracks down on the American crypto industry, the technology adoption continues to grow. However, areas such as money laundering, legislations that may pass both houses, and the imminent regulatory sea change from the 2024 elections play a big role in determining the future of crypto.
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