On Friday, the White House released the “first comprehensive framework for the responsible development of digital assets«. The framework lays out future conclusions and recommendations on the cryptocurrency space. Various US authorities carried out a cryptocurrency industry research for six months. Therefore, this framework has been finalized based on the results of their investigations.
At the beginning of this year, President Joe Biden gave an executive order to carry out investigations into cryptocurrencies. However, the framework published by the White House does not outline any new legislation for the digital asset industry.
But offers a clear path for the regulation of cryptocurrencies in the United States. Various government stakeholders, industry experts, academic researchers, and members of civil society contributed to the broad White House framework.
White House Advises Agencies to Address Cryptocurrency Regulatory Loopholes
The concerns expressed by the White House cover several issues. Among them, consumer protection, environmental sustainability and national security. However, he also stated that the United States should play a role in promoting innovation in the private sector. In addition, the country should also play a role in fostering cooperation at the international level.
In addition, the White House also urged that regulators, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), play a greater role in enforcing rules and regulations in this ambit. They will also need to share more data about consumer complaints.
Also, the US Treasury will play a role in collaborating with other financial institutions to eliminate any potential risk from the cyber world. They will do this by sharing data and analyzing the information with other authorities. Lastly, regulators will have to engage with crypto businesses and companies and ensure that they comply with regulatory guidelines and laws.
Under the framework shared by the White House, the US Treasury will be tasked with working with US allies. The authority will engage with international organizations, including the Organization for Economic Co-operation and Development (OECD). ) and the Financial Stability Board (FSB). In addition, the US Treasury will have to submit a report on DeFi risk assessment by February 2023. It will then submit a similar assessment on NFTs by July 2023.
Also, President Biden will oversee recommendations to develop an assessment framework for non-bank payment providers. This is a major development for the US cryptocurrency community. The framework presented by the White House outlines the way forward for the regulation of cryptocurrencies on a mass level.
