With the United States (US) taking an increasingly aggressive stance against Crypto while other countries begin warming to it. It's easy to think the US has a reckless disregard for the future of crypto and it's standing in the global economy.

You couldn't be further from the truth. Post WW2 the USD was the standard for global finance. With the USD steadily losing value on global markets, the US is scared crypto will further accelerate the decline of the value of the USD.

Don't just take that from me, here's Former US House member Blaine Luetkeymeyer on the subject.

"In 2019 the average daily turnover value of the US Dollar constituted 88% of foreign exchange market transaction globally. This dominance by the Dollar in global marketplace is a key reason why the Dollar remains a reserve currency of the world... .... As digital assets become more common in the global marketplace with the total digital asset market reaching almost 3T Dollars, how do we ensure the US Dollar remains the reserve currency."

December 2021, meeting of the US House Committee on Financial Services.

So how did we get here?

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Why the USD became the standard in Global Trade and the Dollar Became the Global Reserve Currency.

During WW1 and 2 the US was paid by allies in gold. By the end of WW2 the US was the majority owner of Gold and most other countries had depleted their gold supply. These countries needed a way for their local currencies to hold value, so the Bretton Woods Agreement was made. The USD would be backed and redeemable for Gold at a rate of $35 per ounce and other countries would back their currency with the USD.

This made the USD a standard in the global world. Instead of holding Gold in their reserves. These other countries could hold USD which was itself backed by gold. This roughly held until 1971 when President Nixon announced the "temporary end" to being able to exchange USD for Gold.

source

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Although the USD is still the standard for trade in the global market and as a reserve currency. It is steadily losing it's value in the global market. This loss of power is a real concern for the US, and Crypto adoptions further threatens to take power from them and threatens to create a power vacuum in the global market.

From Jan. 2020 to 10/2021, 80% of all US Dollars in existence were printed. That is a massive devaluing of the US Dollar to try and stave off financial consequences of the Covid Pandemic. source

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So next time you think that the US is being reckless in their blatant attacks against crypto adoption, just know it's not reckless - it's intentional... The USD was already being threatened on a global scale before Covid, but with a massive devaluing of the USD during the pandemic - The US is desperate to hold onto their power in the global markets.

Because the USD is the current standard - Crypto adoption is indisputably more of a threat to the US than any other country. You can see the real consequences of that - with the increasing hostility directed at crypto industries in the US.