The US is considering a new legal framework for digital currencies

2024-06-17 17:10:00, Kosova & Bota CNA

The lack of laws on digital currencies has slowed their spread in the United States. Voice of America correspondent Deana Mitchell reports that the House of Representatives' consideration of a new legal framework has encouraged digital currency market investors.

Cyber ??attacks in recent years have caused huge losses to cryptocurrency market investors, causing their value to drop. Experts say the value of digital currencies is rising again, thanks in part to efforts by Congress to regulate the market.

"There's a lot of talk about the lack of legal clarity regarding the treatment of the digital currency market, which is the impetus for this legislation," says Republican lawmaker French Hill.

North Carolina Legislator Patrick McHenry says the Financial Technology and Innovation for the 21st Century Act, or FIT21, will ensure that the United States remains a global leader in technological innovation and adaptation.

"In essence, this legislation applies long-tested consumer protections to ensure that the 20% of Americans who invest in the digital currency market can do so safely, and that more Americans engage in the market" .

Matthew Graham is a partner at Ryze Labs. At a recent cryptocurrency conference in Texas, he said that the United States is lagging behind the world when it comes to digital currencies, and it should not be assumed that the standard for most electronic currencies will continue to be the US dollar.

“If the hegemony of the US dollar is indeed seen as an extremely important national interest, then this is a very strong reason to redouble efforts in the digital currency market. If there is anything that bodes well for the future of the hegemony of the US dollar, it is an alternative category or financial asset that is entirely dependent on the US dollar."

As the campaign for the White House continues, digital currencies bearing the name but not related to President Joe Biden and Republican candidate Donald Trump have appeared on the market.

Presidential candidate Robert Kennedy, Jr. participated in the crypto-currency conference in Texas, where his supporter and the head of the company "American Crypto Academy", Jahon Jamali presented the new digital currency $BOBBY.

"What we've seen over the last few years are so-called 'meme coins' that translate from crypto into a kind of movement, especially now that it's an election year in the United States."

If the Senate does not consider the House's digital currency legislation this election year, then it may be up to the next president to work on the future of digital currencies in the United States./ VOA