White House Releases ‘Comprehensive Framework’ for Crypto Regulation and Development

The White House Has Released “First-Ever” Today broad framework Outlining the findings and recommendations of various federal agencies after a six-month study of the crypto industry “For the Responsible Development of Digital Assets”.

Instruction to research crypto was given in President Biden’s executive Order, signed in March this year. Like the executive order, today’s “comprehensive framework” does not create any new legislation, but it does provide a clear view of US crypto regulation.

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

Their concerns are broad, and the recommendations include not only the obvious (such as consumer protection, environmental and national security), but also a move to strengthen the US’s role as a global crypto pioneer by encouraging private sector innovation and co-operation. Go ahead. – Operations internationally.

The framework is called “Protecting Consumers, Investors and Businesses”, “Promoting Access to Safe, Affordable Financial Services,” “Promoting Financial Stability,” “Advancing Responsible Innovation,” “Promoting Our Global Financial Leadership and Competitiveness.” strengthened”. “Fighting Illegal Finance,” and “Exploring a US Central Bank Digital Currency (CBDC).”

recommendations

Regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are given the green light to continue coordinating efforts to enforce law in the industry and share data on consumer complaints in the 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. Crypto firms have also been tasked with working with regulators to ensure regulatory guidance.

The Treasury will expand 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 illegal financial risk assessment on decentralized finance by the end of February 2023 and an assessment on non-fungible tokens by July 2023.

President Biden himself must decide “whether to call on Congress to explicitly enforce the Bank Secrecy Act, anti-tip-off statutes, and laws against the transfer of unlicensed funds to digital asset service providers — Including digital asset exchanges and non-fungible tokens.NFT) platform.”

Today’s fact sheet acknowledges that there are “opportunities” to ensure that blockchain technology aligns with “improving a net-zero emissions economy and environmental justice.”

Earlier this month, the White House Office of Science and Technology Policy stated that crypto miners should reduce greenhouse gas emissions, and suggested that Congress seek legislation to “limit or eliminate” the high energy intensity consensus mechanism in explicit context. can consider. Bitcoinof proof-of-work model.

The report also referred to “a potential US CBDC”, citing a number of potential potential benefits in technology, economy, security and personal freedom, but efforts in this direction were made by an “Interagency Working Group” as well as a US CBDC. are limited to a set of policy objectives. To consider the potential implications of a “treasury-led” US CBDC, to leverage cross-government technical expertise and share information with partners.

Stay on top of crypto news, get daily updates delivered to your inbox.

Leave a Reply