Keeping in view the overwhelming interest in the market of digital assets, the White House is contemplating regulating the industry of stablecoins and Bitcoin. In addition to this, the office is considering the development of a central bank digital currency (CBDC).
The White House Introduces a Strategy for Bitcoin Regulation and CBDC Development
Recently, a podcast has been hosted by Bitcoin Magazine featuring Jason Brett. They elaborated on the strategy of the White House related to the regulation of the crypto market, how Lightning Network and Bitcoin are viewed by them, as well as the strategy to introduce a central bank digital currency (CBDC). Jason Brett stated that the White House has just taken a conclusive report made by the Financial Stability Oversight Council (FSOC).
The agency is considered the high council dealing with the entirety of the regulatory bodies that focus on what is done by the rest of the regulatory agencies such as the Securities and Exchange Commission (SEC). A framework has additionally been developed on the behalf of the White House to initially cover the digital assets, as per him. Jason mentioned that the respective move is very significant to provide some explanation in this regard.
He added that one of the chief points is that an additional push will potentially be witnessed toward the regulation of the exchanges as well as more attention would be given to the affiliates and subsidiaries of the exchange venues under the span of the regulators, just as the case with the banks under the observation of the Federal Reserve. In his words, it is interesting to look at the themes as well as the main points of the respective agenda introduced by the White House as it emphasizes digital currencies’ development by central banks.
Jason asserted that the CBDC endeavours are taken by the White House, the U.S. Treasury, and the Federal Reserve as the agencies have established a working group for this. That is the reason, he added, these departments are taking adequate measures to be in knowledge of the requirements related to the development and research dealing with the CBDC projects. He specified that a thing was not declared publicly and that a report was additionally made by the Department of Justice (DOJ) to comply with the executive order over digital assets.
Community to Leave Bitcoin for the Stablecoin market
In the respective report, the findings pertaining to the type of legislation that may be proposed by the White House in order to prevent the Federal Reserve from authorizing a CBDC are discussed. He was of the opinion that Janet Yellen, who is the Secretary of the United States Treasury, Jerome Powell, who is the Chairman of the Federal Reserve, and a great number of other executives who work for the Federal Reserve want to have a CBDC. According to them, it would keep the strength of the dollar comparable to that of China. After that, Jason Brett continued by predicting that people’s interest in Bitcoin would decrease and that they would instead focus on stablecoins.