Members of the crypto space and advocacy groups have reacted to US President Joe Biden’s administration’s release of a digital asset regulatory framework, with many suggesting the White House is focusing on the potential downsides of crypto.
In an announcement Friday, the White House said federal agencies and departments submitted nine reports as required by Biden’s crypto executive order from March. Among the information in the fact sheet were policy goals for a U.S. central bank digital currency, ways to mitigate the possible impact of crypto energy use on the climate, goals regulations for enforcement measures, rules for dealing with risks and consumer protection.
The Biden administration said the Treasury Department will report on an “illicit finance risk assessment on decentralized finance” by February 2023, adding that federal agencies “will continue to expose and disrupt illicit actors and to combat the misuse of digital assets”. Additionally, the White House has stated that it will support payment systems similar to FedNow, which the Federal Reserve planned to launch in 2023.
Dylan LeClair, crypto analyst, and Michael Saylor, co-founder of MicroStrategy, critical the position of the administration on Twitter, affirming he was using environmental concerns as a pretext to expand his control over digital assets:
“If you don’t like the way someone uses energy, pay a higher price than them […] No amount of hysterical shouting about climate change will stop the next block from being mined.
“Today’s reports and summaries of the Biden administration’s executive order on digital assets are a missed opportunity to cement U.S. leadership in crypto,” said Kristin Smith, executive director of the US-based Blockchain Association. “While intended to be part of a broader government and stakeholder effort to bring better regulation to crypto assets, these reports focus on risks – not opportunities – and omit recommendations from background on how the United States can promote its burgeoning crypto industry.”
The framework proposed by the White House is a fucking disgrace.
– Clear attack on proof of work implying that they will set environmental standards for mining.
– Pushing FedNow on crypto
– Consider everything as a scam or potential threat
– Harassment on volatility and consumer risk
– The wolf of all the streets (@scottmelker) September 16, 2022
Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said the policy recommendations appeared to be based on an “outdated and unbalanced understanding” of crypto, which could leave details to be determined by other lawmakers or the next. management:
“At yesterday’s hearing [on regulating crypto], many seemed worried that other countries would overtake the United States. Regulation by enforcement is not regulatory clarity. If we regulate by application, it also gives other countries a clear track to understand how the technology works for their interests, which may be contrary to those of the United States.”
Reports on establishing a comprehensive regulatory framework for cryptocurrencies in the United States have been among the first required since President Biden announced the order in March, but the work is far from done. The Treasury Department and the Fed will continue to study the implications to release a digital dollar. The White House said the Financial Stability Oversight Board will release a report in October on risks to the financial stability of digital assets and related regulatory gaps.