(RepublicanInformer.com)- In March, President Joe Biden gave the government direction to investigate cryptocurrencies by signing an executive order titled “Executive Order on Ensuring Responsible Development of Digital Assets.”
Six months later, after researching the cryptocurrency industry, the White House published its first-ever comprehensive framework for the responsible development of digital assets on Friday.
This framework detailed the findings and suggestions of multiple government departments and intended to guide the development of cryptocurrencies responsibly.
The report produced as a result did not establish any new legislation but did provide a clearer picture of how crypto regulations will be handled in the United States.
The framework is divided into several sections, some of which are titled “Protecting Consumers, Investors, and Businesses,” “Promoting Access to Safe, Affordable Financial Services,” “Fostering Financial Stability,” “Advancing Responsible Innovation,” “Reinforcing Our Global Financial Leadership and Competitiveness,” “Fighting Illicit Finance,” and “Exploring a U.S. Central Bank Digital Currency (CBDC).”
The framework authorized the regulators to continue coordinating their efforts to enforce the law in the industry and to share information regarding consumer complaints. The Securities and Exchange Commission (also known as the SEC) and the Commodity Futures Trading Commission are two examples of these regulators (CFTC).
The United States Treasury would actively involve financial institutions in helping to detect and prevent cyber threats by exchanging data with them and doing analyses on such data.
In addition to this responsibility, the Treasury was tasked with coordinating with regulatory agencies so cryptocurrency enterprises could receive regulatory assistance.
This role would be extended to American allies by the Treasury Department through international institutions such as the Financial Stability Board (FSB) and the Organization for Economic Co-operation and Development (OECD).
