Good news or trap? The USA wants to classify cryptocurrencies as traditional currencies
The crypto landscape is about to undergo a major transformation in the United States. While digital assets have long evaded traditional regulatory frameworks, a new initiative from the U.S. Treasury and the Federal Reserve could change everything. By considering reclassifying cryptos as ‘currency’ under the Bank Secrecy Act, U.S. authorities are sending a strong signal: the era of light regulation is coming to an end. This decision, which could be finalized by 2025, represents much more than a mere legislative adjustment. It could reshape the future of the crypto industry by reaffirming the need for transparency and compliance, while challenging the very foundations of decentralization that have defined this ecosystem so far.
![Cryptos soon to be classified as legal tender](https://www.cointribune.com/app/uploads/2024/08/Sinapi-14-1024x683.png)
Crypto under the U.S. Treasury’s scrutiny
After long rejecting cryptos, the U.S. Treasury and the Federal Reserve are considering reclassifying cryptos as ‘currency’ under the Bank Secrecy Act, marking a decisive turning point in the U.S. regulatory approach to digital assets. This revision, aimed at treating cryptos on par with traditional fiat currencies, is driven by the need to strengthen transparency and reporting obligations for financial institutions. By officially classifying cryptocurrencies as currencies, the authorities aim to include these assets in existing anti-money laundering and anti-terrorist financing frameworks. This new definition will apply not only to digital assets that act as substitutes for traditional currencies but also to those that have not yet attained legal tender status.
This development comes in a context where cryptos, despite their exponential growth, remain partially outside traditional regulatory frameworks. By integrating these assets into the scope of financial transparency rules, regulators hope to fill current gaps and put an end to possible abuses. The revision proposed by the Treasury and the Federal Reserve is still in the consultation phase, but it could be finalized by 2025, thus providing a clearer and stricter framework for the future of crypto transactions in the United States.
Towards stricter regulation or institutional recognition?
The repercussions of this decision could be profound for the entire industry. By thinking of integrating these assets under the Bank Secrecy Act, U.S. regulators are already implicitly recognizing that cryptos have reached a sufficient level of maturity and importance to justify regulation akin to traditional currencies. This approach could not only strengthen the credibility of cryptocurrencies in the eyes of institutional investors but also pave the way for broader adoption.
However, this new regulatory environment could also slow down innovation in the crypto ecosystem. The requirement for market players to comply with stricter rules could hinder certain initiatives and encourage companies to rethink their business models. Indeed, the redefinition of cryptos as ‘currency’ could raise questions about the very nature of these assets and force companies to review their strategies to align with new legal requirements.
In conclusion, the willingness of U.S. regulators to classify cryptos as currencies reflects a growing recognition of their importance in the global financial system. While this decision could bring greater legitimacy to cryptocurrencies, it also poses significant challenges for a sector built on the idea of decentralization and freedom of innovation.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.