Democrats have been notorious for jumping on trends in America just as they start losing their cool. They also want to grab for every piece of the pie they can reach and will either get to play or take their ball and go home while making your life as miserable as they possibly can. In the case of President Biden, he wants to do both.
On Wednesday morning, President Biden signed his executive order to have the risks and benefits of any digital assets closely examined, as well as an investigation by the Treasury Department into cryptocurrency’s impact on financial stability and national security. These steps are alone the same steps that other nations have taken when inventing or mining cryptocurrency for their country.
Brian Deese and Jake Sullivan, Biden’s top economic and national security advisers claimed that this was all very innocent in a joint statement. “That will help position the U.S. to keep playing a leading role in the innovation and governance of the digital assets ecosystem at home and abroad, in a way that protects consumers, is consistent with our democratic values, and advances U.S. global competitiveness.”
This statement is nothing more than people playing the semantics game. As the American people who have any knowledge about this kind of thing can tell you, this is not the point of cryptocurrency. The point of crypto is to have a currency that leaves no paper trail. To have something that has no federal involvement from any country. Companies like Coinbase and Robinhood as well as coins like Bitcoin have already violated that by allowing the fed to have a say in their taxes.
If you buy 1,000 Iraqi Dinar today and sit on them for 7 months and then sell them, the American government doesn’t go looking for the profit on the cash itself. You aren’t doing paperwork for the money besides signing a credit card receipt. It’s only when you hold a stock-style interest that they care. So why is crypto any different?
Getting in now lets people know that the U.S. wants to prevent more things from happening. They don’t want to see crypto being used for the funding of terrorism, human trafficking, or narcotics. This is a noble thing, and something most could agree with – on the surface.
Unfortunately for them, we all know the truth. These words are nothing more than a thinly veiled excuse to try and track everything we purchase or how we share money. They don’t want us doing anything they cannot find a way to get a chunk of, and they think they need to audit our bank accounts, too. Considering how wide they have pushed their anti-money laundering sanctions, it’s no surprise that they think they control the markets.
Back in January, the Federal Reserve issued a paper on the subject. Their analysis was that a digital currency could be the answer for the country, especially when banks or firms are creating the wallets and of course, monitoring them. While many experts seem to think federal oversight into crypto is a good thing, those who aren’t so attached to the Fed seem to disagree.
Hilary Allen is a financial regulation professor at American University. His stance on the subject is quite different. “I think crypto is a place where we should be putting the brakes on this innovation until it’s better understood. As crypto becomes more integrated into our financial system it creates vulnerabilities not just to those who are investing in crypto but for everybody who participates in our economy.”
By keeping the Fed out of crypto it would remain a way for the American people (as well as people across the globe) to take on the level of risk they are comfortable with. Feeling risky? Buy some SHIB coin. Want to ensure it’s safer than most? Buy some Bitcoin. Either way, the risk level is on you.