White House issues crypto regulatory blueprint
After six months of research into the cryptocurrency business, the White House unveiled the “first comprehensive framework for the sustainable growth of digital assets”. Describes the findings and recommendations of various government agencies. President Biden’s executive order, signed in March of this year, mandated the study of cryptography. The new structure reportedly reflects the input and experience of numerous stakeholders from government, business, academia and civil society. Company. It’s, based on research from nine studies submitted to the President since the order.
His ideas go beyond consumer rights, the environment, and national security, strengthening the United States’ position as a global leader in the crypto industry by promoting private sector development and global collaboration.
Division of Framework by White House
The framework is divided into the following sections: protecting consumers, investors and businesses; promoting access to safe and affordable financial services; promoting financial stability, promoting responsible innovation; strengthening our global financial leadership and competitiveness; Fight against illicit finance and explore a Central Bank of the United States (CBDC) digital currency. The framework authorizes agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to further coordinate law enforcement efforts in the sector and share information on consumer concerns in this area.
Active Participation of U.S. Treasury
Treasury would actively work with financial institutions to detect and reduce cyber threats through data sharing and analysis. In addition, it has the responsibility of coordinating with the authorities to provide regulatory advice to cryptocurrency companies. Through international institutions such as the Organization for Economic Co-operation and Development (OECD) and the Financial Stability Board (FSB), the Treasury Department will extend this responsibility to allies of the United States. The Treasury of should have completed the assessment of the risk of illicit finance related to decentralized finance (DeFi) and the assessment of the risk related to non-fungible tokens (NFTs) by the end of July 2023 and the end of February 2023, respectively.