USA must be one of the skeptical nations as far as the crypto adoption is concerend. Most of the senate tables in regulation side is in control of the people over age of 60 and they are not really aligning themselves of the blocckhain and the crypto as an alternative assets.
In some way they are right considering crypto is a magic money and without electricity it loses it's value. And they dont want to put bets on the assets which are like this. So they tend to oppose it. Not just through the bill and the regulation but destroying the companies.
USA has not came up with any CBDC plan as of yet. There are literally no executions on the USD pegged on the digital assets. So they seem to be the only nation which is in Top 20 of financial hub to be lagging behind. So they wish to take this further back by adding more regulations.
Let's talk about how USA's new bill of digital asset is turning out for the market.
What is Digital Asset Anti-Money Laundering Act?
US has set up a committe on deciding what should be the rules for the exchanges, consumers, international trades and the companies on how to deal with the digital assets, crypto and the custidy services that are on the US soil. This regulation document is named as the Digital Asset and the Anti money laundering act.
This was designed considering variety of the exchanges making the rug pull schemes, getting away with the law loopholes and also not able to pay back the funds that they have invested into the schemes which failed and they didn't returned the money. This act has got the support of the Elizabeth Warren, a senator in the states and she has been bullish over such regulations.
What does such acts mean for the SEC, Senators and Regulators?
First request this act makes is taking the route of crypto crackdown. Which means they want to crackdown on the owners of such tokens and the coins. Which means Ethereum, Bitcoin and others are the prime targets. Mostly decentralized coins considering the VC coins are trying to be regulatory compliant so they can get away with it easily.
USA has yet to catch up on the CBDC just like United Kingdom. And they seem to be busy regulating the exchanges and the coins instead. So this would not go in the favor of the nation. As it would at the most would bring the dips in the market. And that is going to be a bit uncomfortable for the traders but eventuallly they find the ways.
Bussiness and Bank Lobby acting on the Govt Ministers
I feel the regulators are doing few good things but they would be missing out if they completely blanket ban things. So if they are doing the regulation for the drug trafficking, money laundering and the variety of the criminal use case of the crypto then sure entire country would love to be on their side.
What does it mean for the traders, consumers and investors? Nothing but business as usual. Regulations come and go, as long as what you are doing is not breaking rules, you continue to buy low and sell high as usual. Business and the exchanges would influence govt and their ministers to suite the narrative of the new crypto market in the meantime.
It's not a time to panic, USA does not have power to shutdown bitcoin. Instead it's the time to educate the govt and also get them on the board of ETF and the CBDC to build the runway for our crypto investments.
Digital Asset and AML Act is going to make some good changes on the genuine scams, rugpulls and the criminal activities in the crypto space. And to be fair that is fine enough but the blanket bans and the rapid closure of the exchanges and attacking decentralized altcoins is not going to help USA keep up with the modern blockchain times.