The US has been slow to create regulations for cryptocurrencies and blockchain development, but now there seems to be a little more pressure from inside of Washington DC. Amy Davine Kim is the Chamber of Digital Commerce Chief Policy Officer, and she has gone on the record in support of blockchain.
According to Kim and Perianne Boring, the Founder and President of the chamber,
“It’s time the United States take notice of this growing trend and commit to developing its own frameworks to incentivize the development of blockchain solutions for government and industry…This call for action extends beyond the US Congress to the Administration to ensure that we realize the commercial and economic benefit of this technology. The US Government needs to indicate its support, both in words and in action, for the development of blockchain solutions.”
The Chamber of Digital Commerce is not part of the US Government, but it does maintain an office in the capital. According to the Chamber of Digital Commerce, the US is seeing more interest in blockchain and cryptos at a state level, but there hasn’t been enough done to ensure that the US stays competitive at an international level.
The USA is Lagging in Blockchain Development
Unfortunately, Asia has taken the lead in blockchain development. The USA has been going in a bad direction for tech development in recent years, with President Trump’s immigration policy discouraging the tech industry from accessing the global talent pool.
Hong Kong actually changed the residency requirements for blockchain professionals who want to live in the Chinese SAR, which is a far cry from the US’s prohibitive stance on foreign workers in high tech fields.
Singapore has been another Asian market where blockchain development has taken root.
The small nation has become a hotbed of fundraising for blockchain projects, and the state-owned investment fund is actively looking for blockchain projects to support. It already made a strategic investment in the R3 consortium, though Japanese financial services firm SBI Holdings beat them to the table.
The USA Seems to be Warming up to Blockchain
So far this year, 17 bills that relate to blockchain or cryptocurrencies have been introduced in US state legislatures. Many of them call for task forces to be formed so that new laws can be made to support development in the space.
Kim commented that, “Legislators want to show they’re open for blockchain businesses to come in. They want to know what the industry wants. They want to be supportive.”
The state of Wyoming seems to be doing what they can to encourage investment by blockchain innovators. Mary Pfaff, from the Conference of State Bank Supervisors, said that, “They are trying to make Wyoming the center for innovators in the blockchain and crypto space.” Last year Wyoming changed its tax code and other laws to attract fintech companies.
An Empire’s Problem
One of the biggest problems that cryptocurrency will face is the fact that it is a far better system when compared to government-backed, central bank issued fiat currency. That may be why cryptos have been more welcome in places like Malta, as opposed to Wall St. and Shanghai.
The ability to control the money supply and means of trade settlement is one of the most powerful political tools that exists. The global order that emerged from the Second World War, and evolved as a result of the fall of the Soviet Union, is in the process of disintegrating.
Cryptos are an integral part of a new global monetary system that isn’t controlled and regulated along political lines. Cryptos are inherently stateless, though a new crop of Central Bank backed Digital (CBDCs) may complicate that in the near future.
It should come as no surprise that the US has been slow to adopt a technology that undermines its position at the head of the fiat feeding trough, but the long term ramifications of this reluctance to change with history may be far more severe than anyone realizes today.