This is a transcribed excerpt from the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode, they are joined by Jason Brett and Dusty Daemon to explain how the White House plans to regulate the cryptocurrency industry, how they see Bitcoin and Lightning, and the central bank’s digital currency project.
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Jason Brett: What I can tell you is that the White House just released a final report from the FSOC, which is the Financial Stability Oversight Council, which is like the top board of all the regulators that oversee this than all other regulators like the SEC do. There was also the White House framework on digital assets for the first time and I think it’s important to dissect a bit what that means.
The key takeaways are that there will likely be pressure to regulate exchanges more and to focus on the subsidiaries and affiliates of exchanges that regulators are looking at, similar to how they are currently looking at banks for the Reserve federally, when they look at a bank holding company or Bank of America, they look at what all the other affiliates and subsidiaries are doing. What’s interesting are the main takeaways and themes of this new type of framework that we have from the White House is to focus heavily on research and development in CBDCs (central bank digital currencies).
It’s as if #1 is with the highest priority and by the highest priority, the Federal Reserve, the White House and the US Treasury have formed a CBDC task force. So they’re pushing all the levers to see what research and development needs to do if the US were to choose to introduce a CBDC. One thing that hasn’t been made public is that the Department of Justice also did a report under the Digital Assets Executive Order, where they just passed a report, which is a conclusion on what kind of legislation the US might need to introduce. so a CBDC cannot be authorized by the Federal Reserve.
That’s number one, and I want to come back to that for a moment because I think there’s always a sincere belief. I’m thinking between Treasury Secretary Janet Yellen and also Jerome Powell at the Fed and others at the Fed who think that if the United States can introduce a central bank digital currency, not just to keep the dollar strong in terms of this China is doing it, but at the same time they think it will basically calm crypto/bitcoin right? People won’t be as interested in bitcoin, necessarily. They are really trying to tackle the stablecoin market. To be honest, bitcoin is really not on the list; it’s more that they care about these global stablecoins like Circle’s USDC, but there’s still one core belief that explains why they’re pushing every lever: to see if the US can introduce CBDC because they see it as a problem-solution for all the problems they always describe come from things like bitcoin and other coins.