Governments around the world have made important steps toward regulating the cryptocurrency markets, some even banning them from their economies. The United States of America is the next in line to stir the pot after President Donald J. Trump expressed his dislike for the crypto assets.
In a press conference that took place soon after Facebook announced their plans for their own cryptocurrency – Libra, Treasury Secretary Steve Mnuchin stated that the US Government will have a tough position on cryptocurrency regulations when talks start about Libra.
This has made many investors question whether the US traders will be cut off from the crypto markets or not. Given that one of the major cryptocurrency exchanges cut US investors from its services, things are not looking too good.
Why Now & Not Earlier?
As with many countries, the US is no exception in its uncertainty as to how to deal with the cryptocurrency markets and the financial aspect of the crypto assets. Deregulation, balanced regulation or a complete ban – this is a decision that has to be made soon given Facebook’s plans.
What the US Government doesn’t want is for a tech company to enter the financial field without adhering to strict outlines and regulations. Mnuchin said that Facebook’s ‘got a lot of convincing to do’ to show that they are capable of creating a safe and secure payment system.
The main concern is that Facebook’s Libra might be misused by terrorists and for financing illegal operations on a global scale that might be a threat to the national security of the United States. And this is something that will not be allowed.
The Fate of Cryptocurrencies in the US
The presumed anonymity that cryptocurrency transactions ensure for their owners is the biggest drive behind the use of crypto assets for financing illegal activities. Regulations are what governments around the world want.
And given the history of the US with rigid and heavy financial regulations, we are yet to see how US investors and the cryptocurrency market will be affected, not just locally but on a global scale.