As we at BitOoda drive the development of the digital asset market through sophisticated product offerings and the advancement of the regulatory landscape, we continually assess the macro-level evolution of global economic dynamics so we can work with clients to design the optimal strategies for today’s market and position our clients for future opportunities. Following our last few pieces on recent actions and statements from U.S. leaders and efforts by regulatory bodies monitoring the space, we noted several indications this week that leaders are increasingly thinking about longer-term visions for digital assets.
· CFTC Chair Heath Tarbert opined that a large part of the financial system could end up on the blockchain as the global economy experiences change that he called “revolutionary.”
· In addition, the borderless and decentralized attributes of digital assets continue to prompt discussions and considerations of how best to shape policy and economic strategy moving forward. For example, Tarbert noted that the global nature of digital assets augments the need for international standards and cooperation, in additional to national-level frameworks.
· Sean Stein Smith, a NY-based professor and an Advisory Board member of the Wall Street Blockchain Alliance, wrote on the need for a national blockchain policy, advocating for a digital dollar and a consistent national-level regulatory framework. He said, “Digitization and automation are the future of how commerce will be conducted … but in order for blockchain to fully realize its potential there must a public policy that is understandable for both individuals and institutions.”
· A federal judge said that bitcoin is a form of money covered under Washington, DC’s money transmitter laws, a ruling that — while limited in scope — indicates an expansion of regulatory conceptions of what bitcoin is and how it fits into our legal and economic frameworks.
Of course, no discussion of global economic digitization can overlook the reality of China’s overwhelming lead in establishing a widely-used digital currency and a globally-accessible blockchain (managed by Beijing). As the Blockchain Service Network (BSN) prepares to launch, China-U.S. tensions could raise political questions about the degree of involvement by U.S. companies — including AWS, Microsoft, and Google providing cloud services for BSN data centers and McDonald’s, Starbucks, and Subway participating in a pilot for the digital yuan. With the U.S. Senate holding hearings on economic competition with China — in which participants addressed a potential Digital Dollar and other digital asset initiatives — we hope it is only a matter of time before U.S. economic strategy more officially recognizes the need to modernize our capital market infrastructure in line with the longer-term vision that is becoming more prevalent in today’s policy dialogue.