Developments from the past week have once again put Washington in focus for the crypto community. First, there was the 2021 budget proposal which saw the Trump administration tentatively allocating funds for the express purpose of controlling digital assets.
The reaction to the proposal has been mixed. Some see it as a positive sign of growth, signaling that crypto is here to stay and the government is ready to work with it in a constructive, long-sighted fashion. Others are not sold on Uncle Sam’s interventions into the fintech space and see this as just the latest move from an establishment whose speech has been at times dismissive, at times serious — but whose actions have always an obstacle to progress.
The inclusion into the proposed budget is a big first when it comes to American regulatory posture towards cryptocurrency, regardless of how the intent behind the move is perceived. It seems that the reasoning behind the increase in attention runs back to the unveiling of Libra, Facebook’s planned cryptocurrency.
If the behavior of lawmakers and members of the American financial establishment is anything to go by, Libra seems to have caught everyone napping and now they are scrambling to get up to speed. The other development out of Washington is also tied to Libra, with Federal Reserve Chairman Jerome Powell telling the House of Representatives Financial Services Committee that Facebook’s cryptocurrency has impelled the Fed to really start looking into the possibility of creating a digital dollar.
For an insider’s take on what to make of these stories and how they could impact things in the cryptocurrency industry, we talked with Changelly cryptocurrency exchange CEO Eric Benz.
Budget proposal signals new approach
We began with the budget proposal and what increased regulatory attention spells out for the future.