Government Officials Can Help Drive Crypto Adoption Mainstream

Government officials may be the key to supporting cryptocurrency mainstream adoption in the long term. This year’s wild fluctuations in crypto prices have alarmed investors, Wall Street, and even regulators are weary.

Yet, the cryptocurrency space is still young, and a lot is yet to explore. Government officials should chip in to drive mainstream adoption of cryptocurrencies. It could, after all, be the currency of the future. 

Toning Down Crypto Regulation

Cynthia Lummis, a government official, has stated some exciting approaches for digital currencies. She has been attending conferences and workshops on crypto. And with that, she admits to gaining working knowledge on crypto. 

Lummis is persuading her fellow members of Congress to follow Wyoming’s hands-off approach when it comes to crypto regulation. Platforms such as Kraken and Cardano have moved their operations to different states with less population. 

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Since cryptos are still in their infancy, starting to regulate them before they grow further might limit their potential. The regulation should be pretty minimal so that it doesn’t drive away crypto companies and new investors.

Exempting Crypto from Taxes

Another way that government officials can drive crypto mainstream is by exempting crypto from taxes in the meantime. 

The latest move to tax cryptocurrency is the U.S. bill proposing to raise about $28 billion through extra crypto taxes. The bill was targeting new information-reporting requirements to the cryptocurrency space. It would seem that the IRS collects taxes owed on capital gains from digital assets transactions.

Without a doubt, many investors and crypto companies have started fearing to explore. Given a couple of years before taxation starts could make cryptocurrencies the ultimate future of currency.

Bitcoin ETFs

Gold and foreign currency traded funds exist and allow investors to wager on hedge risks associated with specific commodity prices. Yet, after years of effort, the SEC still has to approve a bitcoin ETF.

They reason that they are not confident in the integrity of the underlying market. This is a distant point, but regulating digital currencies could allow more innovation.

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All in all, you should note that the cryptocurrency world is relatively new. Investors, crypto-based companies, and the government try to understand it, which may take some time. Before taking any regulation measures, it will be long after the space has evolved to reveal more use cases. And, that may not be anytime soon.