The crypto market crash has attracted leading wealth managers in the digital, some of which have launched investment funds and cryptocurrency exchanges. The Treasury Department considers the implications of a CBDC on the future of money and payments, US global financial leadership, and economic risks.
Selva Ozelli, an international tax advisor and certified public accountant (CPA), said the United States is among the most crypto-friendly countries. It occupies first place regarding the number of Bitcoin and Ethereum nodes, which arouses the interest of regulators.
The US Government Aims to Adopt Blockchain Technology
The Office of Science and Technology recently stated the government must protect communities from the negative impacts of crypto-related pollution and climate change.
The Inflation Reduction Act introduced by president Joe Biden is the most significant investment by the US regarding greenhouse gas reduction, clean energy, and climate resilience. It uses around USD 370 billion for incentives like green energy tax credits to encourage the large-scale development of clean energy technologies.
Applying blockchain technology to micro-electric networks may promote socio-technical innovations to restructure a sustainable energy supply chain. That would allow the coordination of distributed energy resources.
Ethereum recently changed to the proof-of-state (PoS) consensus algorithm through the Merge upgrade. That has improved the sustainability and security of the network and increased its scalability.
According to the Crypto Carbon Ratings Institute, the Merge has reduced the carbon footprint of the Ethereum network by over 99.992%. That should help the US meet its climate goals of a 50% to 52% reduction in greenhouse gas emissions by 2030.
More Leading American Wealth Managers Adopt Crypto Assets
The crypto market decline has attracted some leading wealth managers in the digital asset industry, like MassMutual and BlackRock. The latter launched an investment fund that monitors the price of Bitcoin (BTC) five years after its CEO, Larry Fink, criticized the cryptocurrency.
Digital asset firm Securitize Capital seeks to tokenize the Health Care Strategic Growth Fund II of USD 491 billion wealth management firm KKR. In addition, Charles Schwab, Citadel, and Fidelity Digital Assets, among others, are launching a new cryptocurrency exchange scheduled to debut in November.
Meanwhile, Coinbase announced that it would support a lawsuit against the Treasury Department, claiming it went too far when sanctioning Tornado Cash.
The Treasury Department Is Open to Developing a CBDC
The Office of Financial Research of the Treasury Department published a working paper about the implications of a CBDC in stabilizing the banking system. It stated that a CBDC could improve financial stability, as banks perform fewer maturity transformations when depositors have access to it.
In addition, it said the flow of funds into the CBDC helps policymakers to react more quickly regarding stressful situations. That way, they reduce the incentive for depositors and other short-term creditors to withdraw assets.
Meanwhile, the Treasury Department reported that there is a natural use case for a CBDC. They consider the implications regarding building the future of money and payments, supporting US global financial leadership, and minimizing risk.
The Illicit Use of Cryptocurrencies by Some American Citizens
In June, the Department of Justice announced the arrest of three people linked with the first cryptocurrency insider trading scheme. The alleged criminals included the former product manager of Coinbase.
In September, the government agency established a national network of digital asset coordinators to continue fighting the growing threat. They believe that some malicious actors among American citizens might use digital assets to commit illicit activities.
By Alexander Salazar
