This week, a lot of investors are focusing once again on crypto regulation news. With the U.S. government really starting to move on its infrastructure for the digital assets market, we’ve had several updates touching on regulation. One especially positive update? The U.S. Department of Commerce has opened itself up to public comment ahead of its crypto competitiveness recommendations.
Crypto infrastructure is certainly an all-hands-on-deck procedure, thanks to President Joe Biden’s executive order. The order, laying the groundwork for “responsible development” of the industry, calls multiple organizations to action. It also forges many multi-organizational working groups that are to provide Congress with the educational resources it needs to draft crypto law.
A lot of the recent chatter around these regulations has to do with stablecoin provisions laid out in the order. In particular, the collapse of TerraClassicUSD (USTC-USD) is now helping the U.S. understand what went wrong — and how they can implement this knowledge in their stablecoin-specific laws. Last week, one White House official said U.S. stablecoin regulations may be ready by the end of the year.
Meanwhile, Congresspeople are rolling out their own bills on broad crypto regulations. The most hyped of the bunch is that of Senator Cynthia Lummis, a crypto bull who investors believe has a solid take on government crypto oversight.
Crypto Regulation News: Commerce Department Teams Up With Digital Asset Companies
These stories show that crypto regulation talk has ramped up quickly in recent weeks. But investors especially see evidence of increased momentum with today’s crypto regulation news about the U.S. Department of Commerce working with industry leaders.
Back in May, the department solicited crypto-related institutions for comment in an effort to help develop a framework for industry competitiveness. Today marks the end of the period in which companies could send in their comments. Now with this period over, the department is moving into the next stage of the process.
Eight entities sent in comments to the department. For example, Mastercard (NYSE:MA) sent in a lengthy, 16-page report on the issue. Other commenters include the American Bankers Association (ABA), the Proof of Stake Alliance (POSA) and the Independent Community Bankers of America (ICBA).
The U.S. Department of Commerce is now tasked with strategizing ways in which the nation can compete globally in the crypto market. This includes a plan for addressing roadblocks to competitive development. It also will address ways in which the country can leverage its existing financial institutions to meet this end. The department is tasked with presenting its strategy by September 5.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
