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The White House today released a “First Full frame for Responsible Development of Digital Assets” outlining the findings and recommendations of various federal agencies after six months of studying the crypto industry.

The directive to research crypto was given in President Biden’s speech Executive Decree, signed in March this year. Like the Executive Order, today’s “overarching framework” does not provide for any new legislation, but it does provide a clearer view of U.S. crypto regulation.

The new framework is based on research from nine reports submitted to the president since the order and purports to reflect “the input and expertise of diverse stakeholders from government, industry, academia and civil society.” .

Their concerns are broad, and the recommendations not only include the obvious (such as consumer protection, the environment, and national security), but go even further to cement the role of the United States as a global pioneer in crypto. encouraging innovation and private sector cooperation. -operation at the international level.

The framework is divided into sections titled “Protecting Consumers, Investors and Businesses”, “Promoting Access to Safe and Affordable Financial Services”, “Fostering Financial Stability”, “Promoting Responsible Innovation”, “Strengthening our global financial leadership and competitiveness, “Fighting Illicit Finance” and “Exploring a US Central Bank Digital Currency (CBDC)”.

The recommendations

The framework authorizes regulators, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to continue to coordinate industry enforcement efforts and to share consumer complaint data across space.

The US Treasury will take an active role in working with financial institutions to help identify and mitigate cyber risks through data sharing and analysis. He is also responsible for working with regulators to ensure crypto firms have regulatory guidelines.

The Treasury will extend this role to US allies through international organizations such as the Organization for Economic Co-operation and Development (OECD) and the Financial Stability Board (FSB).

The Treasury is expected to complete an illicit finance risk assessment on decentralized finance by the end of February 2023 and an assessment on non-fungible tokens by July 2023.

President Biden himself will have to decide “whether to ask Congress to amend the Bank Secrecy Act, anti-whistleblower laws, and laws against unlicensed money transmission to explicitly apply to digital asset service providers, including digital asset exchanges and non-fungible tokens (NFT) platforms.

Today’s factsheet admits there are “opportunities” to ensure blockchain technology aligns with “a net-zero emissions economy and improved environmental justice”.

Earlier this month, the White House Office of Science and Technology Policy said that cryptominers should reduce greenhouse gas emissions, and suggested that Congress could consider legislation to “limit or eliminate” energy-intensive consensus mechanisms, in a clear reference to Bitcoinit is proof of work model.

The report also mentions “a potential US CBDC” citing many profound potential benefits in technology, economy, security, and individual freedom, but efforts in this direction are limited to a set of policy objectives for a US CBDC. , alongside a Treasury-led “interagency working group” to “examine potential implications of a U.S. CBDC, leverage cross-jurisdictional technical expertise, and share information with partners.”

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