U.S. concerns have grown over the use of cryptocurrency in illegal activities. However, there is a global competition for launching stablecoins that can be used by more than half of the world’s population.
Meanwhile, Facebook is committed to launching its Libra stablecoin that would be used by more than 2.5 billion persons.
In addition, Russia leads the world’s first stablecoin initiative alongside the Eurasian Economic Union and the BRICS countries, which can be used by 41% of the world’s population. Tether also launched a yuan-pegged stablecoin called CNHT, which can be transferred from one person to another.
Amid these developments, strict U.S. federal laws and subsequent anti-money laundering regulations adopted by traditional financial institutions are forcing transnational organized unions and foreign enemies such as China and Russia as well as terrorist groups to divert their illicit business.
To avoid law enforcement in the U.S., these actors use unconventional methods by transferring cryptocurrencies peer-to-peer via mobile devices, crypto exchanges inside and outside the U.S.
Therefore, U.S. law enforcement and regulatory institutions have responded to such concerns by pursuing law enforcement efforts. They established a cryptocurrency intelligence program and proposed new regulations to pave the way for widespread adoption of blockchain technology.
New crypto laws
In February, Steven Mnuchin, the U.S. Treasury Secretary, told the Senate Finance Committee that his agency’s enforcement arm would shortly impose strict rules on cryptocurrency to help uncover “false” accounts and other illicit business.
“We want to make sure that blockchain technology moves forward. We want to make sure cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,” Mnuchin said.
Earlier this month, U.S. Congressman Paul Gosar has introduced the “2020 Crypto-Currency Act”; a bill that seeks to choreograph a wide range of digital assets to respond to the regulator in question.
As Will Stechschulte, Gosar’s legislative assistant explained, “the bill looks to provide not only clarity, but legitimacy to crypto assets in the U.S.”