President Joe Biden signed the Ensuring Responsible Development of Digital Assets Executive Order in March, directing the government to study cryptocurrency.
Six months later, after researching the cryptocurrency industry, the White House on Friday released its first-ever comprehensive framework for responsible development of digital assets that outlined findings and suggestions from multiple departments.
The resulting report did not establish new laws, but provided a clearer picture of how crypto regulations in the United States will be handled.
Sections of the framework include “Protecting Consumers, Investors and Businesses”, “Promoting Access to Safe and Affordable Financial Services”, “Fostering Financial Stability”, “Promoting Responsible Innovation”, “Strengthening Our Leadership Global Finance and Our Competitiveness”, “Combating Illicit Finance” and “Exploring a US Central Bank (CBDC) Digital Currency”.
The framework gave regulators permission to continue to coordinate efforts to enforce the law in the sector and exchange information on consumer complaints. Examples of these regulators were the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Through data exchange and analysis, the US Treasury would actively engage financial institutions to help detect and reduce cyber threats.
In order to ensure that crypto companies have regulatory guidelines, the Treasury has also been instructed to work with regulators.
Through international institutions such as the Financial Stability Board (FSB) and the Organization for Economic Co-operation and Development (OECD), the Treasury would extend this responsibility to US allies.
By the end of February 2023, the Treasury should have completed its assessment of the danger of illicit financing related to decentralized finance, and by the end of July 2023, it should have completed its assessment of non-fungible tokens, according to the recommendations.
For bank secrecy law, rules against whistleblowers, and laws against unlicensed money transmission to apply specifically to digital asset service providers – such as digital asset exchanges and non-fungible tokens (NFTs) – Biden will have to make a decision, then possibly ask Congress what he thinks about it.
According to the fact sheet, there were opportunities to ensure that blockchain technology supports “a net-zero emissions economy and increased environmental justice.”
The sheet added that “the President will consider whether to ask Congress to amend the Bank Secrecy Act, anti-whistleblower laws, and laws against unlicensed money transmission to explicitly apply to service providers. digital asset services – including digital asset exchanges and non-fungible tokens. platforms (NFT)”.
In a clear reference to Bitcoin’s proof-of-work model, the White House Office of Science and Technology Policy said earlier this month that crypto miners should reduce greenhouse gas emissions and suggested that Congress could consider legislation to “limit or eliminate” the energy-intensive consensus. mechanisms.
The report also refers to “a potential US CBDC” and lists many important potential benefits for technology, the economy, security, and individual liberty.
Produced in association with Benzinga.
This story was provided to Newsweek by Zenger News.
We would love to give thanks to the author of this article for this amazing web content
White House Releases First Crypto Regulatory Framework – Noufelle FR
You can find our social media profiles and other pages related to it.https://metfabtech.com/related-pages/