Launch of a public consultation on the regulation of cryptocurrencies by the US Treasury

the u.s. department of treasury seeks public opinion on the “responsible development of digital assets.” His questions cover various aspects of cryptocurrencies, including decentralized finance (DeFi), non-fungible tokens (NFTs), mixers, virtual asset service providers (VASPs), and the digital dollar.

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According the Treasury document, “the department specifically invites comment on the risks associated with illicit finance and national security risks related to digital assets, as well as the action plan to mitigate the risks.”

The questions open to comments are as follows:

  • Has the Treasury comprehensively defined the illicit finance risks associated with digital assets?
  • What are the illicit finance risks associated with non-fungible tokens?
  • What are the illicit finance risks associated with DeFi and peer-to-peer (P2P) payment technologies?
  • What are the existing regulatory obligations that you believe are not or no longer suitable for digital assets?
  • What additional measures should the US government consider to combat ransomware?
  • What additional measures should the U.S. government consider to address illicit finance risks associated with mixers and other anonymity-enhancing technologies?
  • How can the Treasury most effectively support the consistent implementation of global AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) standards across all jurisdictions for digital assets, including virtual machines and VASPs?
  • Are there specific countries or jurisdictions where the U.S. government should focus its efforts, through bilateral outreach and technical assistance, to strengthen foreign AML/CFT regimes related to service providers? virtual assets?
  • How can the Treasury most effectively support the incorporation of AML/CFT controls into the design of a possible US CBDC?

Comments can be submitted until November 3 and form part of the public record.

Many public figures and analysts have long criticized the US government for focusing heavily on illicit uses of crypto-assets, disregarding their potential benefits.

The Chief Policy Officer of the Blockchain Association, Jake Chervinskyargued that the collapse of Terra/LUNA massively damaged the government’s already poor perception of cryptocurrencies.

The formulation of this request for public comments by the Treasury was carried out in accordance with the presidential decree of March 9 of this year, “Ensuring Responsible Development of Digital Assets(Ensuring responsible development of digital assets). This decree was intended to create a stricter and, according to some, more coherent regulatory framework for the crypto sector.

The order said the government “must strengthen United States leadership in the global financial system and in technological and economic competitiveness,” a measure that includes “the responsible development of payment innovations and digital assets.”

A number of government agencies have been called upon to submit their proposals to the executive on how to govern the sector and create customer protection protocols within 90 to 180 days.

This public consultation is therefore not the only one that followed the decree of March 9. As noted, in July of this year, the Treasury presented President Joe Biden with a framework to facilitate international cooperation for the introduction of cryptocurrency regulations and standards internationally.

The Treasury had stated that:

“What is outlined in the framework is intended to ensure that, with respect to the development of digital assets, America’s core democratic values ​​are upheld; consumers, investors, and businesses are protected; appropriate system connectivity global financial system and the interoperability of platforms and architectures are preserved; and the security and soundness of the global financial system and the international monetary system are maintained.”

Then, just a few days ago, the Treasury Department submitted a action plan at the White House made public. The Coordinated Action Plan was developed by the Secretary of the Treasury, in consultation with the Secretary of State, Attorney General, Secretary of Commerce, Secretary of Homeland Security, Director of the Office of Management and Budget , the Director of National Intelligence and officials of other relevant agencies, the document says.

The White House released a “First-Ever Comprehensive Framework for Responsible Development of Digital Assets“, which presents the conclusions and recommendations of various federal agencies after six months of study of the crypto industry.

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Launch of a public consultation on the regulation of cryptocurrencies by the US Treasury

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