The popularity and utility of cryptocurrencies are steadily on the rise, but this has also seen the tech become a tool used in illicit activities. This, alongside problems like money laundering and terrorist funding, has become one of the growing concerns among regulators.

The United States of America, being one of the biggest cryptocurrency and blockchain nations, has often been criticized due to its lack of proper regulatory infrastructure or frameworks for the industry.

There is also the added pressure of nations like China developing their own Central Bank Digital Currencies (CBDC) to bypass sanctions placed by the American government. Hence, cryptocurrencies and blockchain have garnered a lot of attention in D.C.

The House of Representatives and U.S. Senators are set to introduce a total of 32 bills that aim to provide regulatory clarity about the trending technology in the USA in 2020. The various concerns regarding Facebook’s controversial stablecoin Libra have also been a major player forcing the regulators in D.C to take swift action.

Crypto and its illegal use

Among the 32 bills, twelve of them will address concerns regarding the misuse of cryptocurrency in illegal activities like terrorism, money laundering, human, and sex trafficking. One bill also addresses the concerns regarding foreign adversaries using crypto as a tool to avoid economic sanctions.

Senator Lindsay Graham has introduced a bill dubbed ‘Defending American Security from Kremlin Aggression Act’ that will promote efforts to protect financial institutions, including cryptocurrency exchanges, from cyber theft. Rather than focusing on how criminals utilise crypto, this bill would uplift crypto exchanges to the same level of importance that financial institutions get on an international level.

Regulatory Framework

Thirteen of these bills define the position of crypto and blockchain within the nation’s regulatory framework. This category comprises of the highest number of bills primarily focusing on tech companies like Facebook developing a global currency.

The ‘Keeping Big Tech Out Of Finance’ Act introduced by Representative Jesús “Chuy” García is one among the list that is pretty straightforward about not allowing giant tech companies to get involved with finance. The representative also introduced another bill dubbed ‘Protecting Consumers From Market Manipulation Act’, that requires non-financial institutions to come under the direct supervision of the Federal reserve and subject to regulatory scrutiny.

Blockchain utility and Digital Dollar

Amidst the seven remaining bills, five of them discuss how blockchain could be used by the government. Bills in this category aim to establish Blockchain working groups focusing on how blockchain could be utilised in the public sector.

The remaining two bills were the latest to be added to the list. Both the bills consist of the term ‘digital dollar’ and the tracking of ‘central bank digital currency’ legislation has been developed.

The bills in this category include the ‘Banking For All Act’ by Senator Sherrod Brown (D-OH) and a second bill called the ‘Automatic BOOST To Communities Act’ introduced by Representative Rashida Tlaib (D-MI) and Representative Pramila Jayapal (D-WA).

The bills focus on a faster method of delivering economic stimulus benefits to Americans in light of COVID-19.