- The White House has published this Friday, September 16, what would be the first cryptographic regulatory framework, which covers the key areas of the cryptocurrency space that the Biden Administration wants to focus its attention on.
- “Digital assets pose significant risks to consumers, investors and businesses. The prices of these assets can be very volatile: the current global cryptocurrency market capitalization is about a third of its November 2021 high.”
- The document states that the administration has already developed policy goals for a CBDC system and as they put it, it could offer many benefits.
The administration of President Joe Biden has called for more control and laws on cryptocurrencies, which is why the White House has published this Friday, September 16, what would be the first cryptographic regulatory framework, which covers the key areas of the cryptocurrency space in which the Biden Administration wants to focus its attention on.
This regulatory framework describes the methods in which the financial services sector could change to make transactions without borders easier, as well as take drastic measures against fraud in the world of digital assets, The publication reads:
“Digital assets pose significant risks to consumers, investors and businesses. The prices of these assets can be very volatile: the current global cryptocurrency market capitalization is about a third of its November 2021 high.”
The roadmap consists of 7 sections, starting with, Protection of consumers, investors and companies; Promotion of access to safe and affordable financial services; (2) Promotion of access to safe and affordable financial services; (3) promotion of financial stability; (4) Promotion of responsible innovation; (5) Strengthen our competitiveness and global financial leadership; (6) Fighting Illicit Finance and (7) Exploring a US Central Bank Digital Currency (CBDC).
Within the first section, they encourage the Securities and Exchange Commission and the Commodity Futures Trading Commission to “conduct aggressive investigations and enforcement actions against illegal practices in the digital asset space.” However, the division of functions that each regulator will have is not specified, which has always been a topic of discussion in the country.
In many of the sections there is no mention of some new topic that has not been discussed before, it is emphasized again as evidenced in the fight against illicit activities.
Likewise, it points out why in order for the digital economy to “work for all Americans”, it is necessary to “develop financial services that are safe, reliable, affordable and accessible to all.”
“To make payments more efficient, the Federal Reserve has planned the 2023 launch of FedNow, a 24/7, instant interbank clearing system that will further advance the nation’s instant payments infrastructure along with the Real Time Payments system. of the Clearing House.”
There is also talk in one of the sections about stablecoins, citing the collapse of Terra as proof of the “potential for instability”. So, to achieve financial stability, the Treasury plans to work with financial institutions to identify risks and vulnerabilities, and will collaborate with other agencies to “analyze emerging strategic risks.”
In the sixth section, of “Fighting Illicit Finance,” it notes that, “The President will consider whether to ask Congress to amend the Bank Secrecy Act, antiwhistleblower statutes, and laws against transmitting money without a license to that explicitly apply to digital asset service providers, including digital asset exchanges and non-fungible token (NFT) platforms.”
“The United States will continue to monitor the development of the digital asset sector and its associated illicit financing risks, to identify any gaps in our legal, regulatory, and supervisory regimes. As part of this effort, Treasury will complete an illicit finance risk assessment on decentralized finance by the end of February 2023 and an assessment on non-fungible tokens by July 2023.”
Finally, the last section, and the most striking, is the “Exploration of a US central bank digital currency.” The document states that the administration has already developed policy goals for a CBDC system and, as they put it, it could offer many benefits, including allowing for a “more efficient payment system, providing a foundation for further technological innovation, facilitating transactions faster cross-border transactions and be environmentally sustainable… A CBDC could also help preserve US global financial leadership and support the effectiveness of sanctions. But a CBDC could also have unintended consequences, such as races to the CBDC in times of stress.”
“To support the efforts of the Federal Reserve and advance other work on a potential United States CBDC, Treasury will lead an interagency working group to consider the potential implications of a United States CBDC, drawing on the technical expertise of all governments. and share information with partners. Officials from the Federal Reserve, the National Economic Council, the National Security Council, the Office of Science and Technology Policy, and the Treasury Department will meet regularly to discuss the working group’s progress and share updates on the CDBC and other payment innovations.
