US Lawmakers Can Leverage Bitcoin’s Potential in Crypto Work
As US policymakers consider the future of cryptocurrency, two critical priorities have emerged for the House Republican majority: market structure and stablecoins. While stablecoins have received most of the attention, the potential for the US to seize a key advantage over its global competitors lies in the market structure work of the House of Representatives Financial Services Committee.
Bitcoin: A Valuable Tool for Policymakers
Bitcoin, the oldest tool in the cryptocurrency toolbox, has proven to be a valuable alternate source of value and a tool that US lawmakers can use to confront an increasingly volatile and polarized world. While not a panacea for all economic issues, Bitcoin is a kind of digital gold that provides economic freedom for residents of countries whose financial agency is at risk if they oppose their ruling power.
Bitcoin: A Credibly Neutral Tool
The Bitcoin Policy Institute recently noted in a letter to the US Treasury Department that Bitcoin is “credibly neutral, widely decentralized, uncontrolled by any leadership or founding team, and optimized for resisting censorship.” For US policymakers focused on rivalries with China and Russia, Bitcoin offers an opportunity to enhance the economic freedom of those living in countries where their financial agency may disappear if they resist their ruling power.
Bitcoin: A Tool for Democratic Change
Furthermore, if dissidents in foreign countries can access sources of value outside the regime’s control that oppresses them, then the political equation could shift. Democratic change in nondemocratic countries could become possible, making Bitcoin an important tool for policymakers to consider.
Bitcoin: A Hedge for Unstable Countries
For residents of unstable countries, Bitcoin can serve as an economic insurance policy against instability in their economies. While holding Bitcoin may not be the perfect answer, it is undoubtedly easier for these hypothetical residents than opening a US or European bank account to store dollars or euros.
US Crypto Market Structure Legislation
The US can positively affect American priorities beyond foreign policy with crypto market structure legislation that supports Bitcoin. For example, bitcoin mining operations can provide jobs, particularly in rural communities left behind by economic growth over recent decades. Lawmakers should consider writing into law the emerging consensus that Bitcoin is a commodity, setting up a regime of spot market regulation overseen by the Commodity Futures Trading Commission, ensuring that bitcoin mining takes place in the US, and incentivizing bitcoin mining that uses renewable energy and pays workers family-sustaining wages.
Conclusion
As technology continues to evolve, policymakers must weigh the good and bad, risks and rewards, and put policies in place that promote the common good. As we approach two decades since Satoshi’s landmark white paper, the potential of Bitcoin in the future of the economy and the implications for US policy are becoming more apparent. Policymakers should not overlook this powerful tool and the opportunities it presents for the US to seize a key advantage over its global competitors.
Source: CoinDesk
