The United States has become a leader in the development of cryptocurrencies. After the miners left China, mining farms found shelter in the United States and the country has the largest number of Bitcoin and Ethereum nodes in the world.
It can be said that the United States is one of the most crypto-friendly countries in the world and regulators have shown a special interest in digital assets.
In September, the administration of President Joe Biden published a series of federal reports on how cryptocurrency can be regulated in the coming year.
In these reports, the Office of Science and Technology stated that the government is responsible” for “protecting” communities from the negative effects of pollution and climate change caused by cryptocurrencies.
President Biden's law on reducing inflation regulates the largest investments in American history in reducing greenhouse gas emissions, clean energy and climate change resilience.
It allocates about $370 billion in clean energy tax incentives designed to encourage large-scale development of clean energy technologies and further electrification and digitalization of the United States.
The application of blockchain technology to power grids can potentially contribute “techno-socio-economic innovations and provide for the restructuring of a sustainable energy supply chain” by ensuring the coordination of distributed energy resources.
A report by the Crypto Carbon Ratings Institute for September 2022 shows that Ethereum's transition from proof-of-work to proof-of-stake has reduced the amount of electricity consumed by the Ethereum network by more than 99.988%, and its carbon footprint by more than 99.992%.
This should help the US achieve its climate goals, as described by the Office of Science and Technology:
- “a 50-52% reduction in greenhouse gas emissions by 2030, a carbon-free electricity supply system by 2035, and a zero-emission economy by 2050 at the latest.”
Despite the collapse of the cryptocurrency market, interest in digital assets continues to remain at a high level.
Thus, the digital asset company Securitize Capital intends to tokenize the $491 billion Healthcare Strategic Growth Fund II of the asset management firm KKR.
Charles Schwab, Citadel, Fidelity Digital Assets and others are launching a new crypto exchange called EDX Markets, which is scheduled to debut in November.
The Financial Research Department of the Ministry of Finance published a working paper in July 2022, which researches how the central bank's digital currency (CBDC) can affect the stability of the banking system as a whole.
CBDC can increase financial stability, as:
- “Banks carry out less maturity transformation when depositors have access to CBDC, which reduces their exposure to the risk of depositors' bankruptcy.
- Monitoring funds at CBDC allows policy makers to respond more quickly to periods of stress, which reduces the incentive for depositors and other short-term lenders to withdraw assets.”
The Treasury Department's September 2022 report, The Future of Money and Payments, researched the role of stable coins and CBDC in “building the future of money and payments,” “supporting U.S. global financial leadership,” “promoting financial accessibility and equity,” and “minimizing risks.”
Responsibility for the illegal use of cryptocurrencies
In September 2022, the Department of Justice published its report “The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets” and created a Digital Asset Coordinator (DAC) Network to continue its “efforts to combat the growing threat posed by the illegal use of digital assets to the American public."
Through the creation of the DAC network, the Criminal Division and the National Cryptocurrency Enforcement Team will continue to ensure that the Department of Justice and its prosecutors have the best opportunities to combat the ever-evolving criminal use of digital asset technology.
Thus, cryptocurrency in the United States is becoming more regulated, which ensures the stability of the work of cryptocurrency companies in the country and protects the rights of investors of digital assets.