In recent times, the United States has been notably reluctant to adopt a comprehensive crypto market policy. The reluctance can be understood through two primary thought processes. These ideas were brought to light following the Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance and its chief executive officer, Changpeng Zhao (CZ).
Interestingly, the US regional banking crisis has added weight to the argument for a decentralized financial network governed over blockchain, which was initially the reason for creating Bitcoin. In March 2023, the CFTC sued Binance over the alleged “wilful evasion of US law,” amidst several other enforcement actions taken by the U.S. Securities and Exchange Commission (SEC) against various crypto businesses.
During an “Ask Me Anything” event hosted by Binance, CZ provided insights into the US’s unwillingness to let go of its global US Dollar dominance. He explained that the United States is a vast government with multiple departments studying the financial sector while individual government officials may have varying opinions. However, some people in the banking sector are threatened by the new technology (blockchain) and fear losing their relevance if crypto is regulated.
CZ suggests that adopting the web 3.0 space and embracing the blockchain industry could help the United States maintain its dominance. This is contrary to the belief that regulation may lead to the devaluation of the US Dollar. CZ further states, “I personally believe that the best way to protect US Dollar dominance is to adopt crypto and blockchain industry. But different people have different views.”
With the emergence of crypto markets and the technology behind it, some US banking giants are threatened. However, integration with the blockchain and web 3.0 space, coupled with a solid regulatory framework, might be the way forward for the US to maintain its Dollar dominance in the rapidly evolving financial landscape.
While these insights come from an industry expert, it is vital for readers to conduct their market research before investing in cryptocurrencies. The opinions expressed here may vary depending on market conditions, and the author or the publication hold no responsibility for personal financial losses that could stem from the contents of this article.
Source: Coingape
