Summary:
- The White House published its first set of plans to regulate cryptocurrencies.
- Friday’s publication included a combative approach to illegal crypto operations and possible plans for a CBDC/digital dollar
Months after President Biden’s EO in March and some responses from federal agencies, the White House published its first-ever framework for regulating cryptocurrencies on Friday.
The order marked the first “whole of government” approach from American authorities towards standardizing regulatory practices for the cryptocurrency market.
A fact sheet revealed two key sections of the publication focused on combating illicit crypto operations and possible plans for a central bank digital currency (CBDC).
Regarding illicit finance, President Biden will consider amendments to the Bank Secrecy Act by Congress. The White House will also mull over updates to “anti-tip-off statutes, and laws against unlicensed money transmitting to apply explicitly to digital asset service providers”.
Crypto exchanges and non fungible token (NFT) platforms would fall under the purview of such amendments, per Friday’s publication.
The White House could also consider developing a digital dollar or CBDC. Friday’s report opined that a digital U.S. dollar could offer “significant benefits” for the economy. Notably, a CBDC would differ from existing dollar-pegged stablecoin tokens like Tether’s USDT and Circle USDC.
Moving forward, Biden’s regime expects more work and reports on a possible CBDC development.
U.S. Treasury Responds To White House Executive Order On Crypto
Federal agencies including the Treasury Department published reports on digital assets in response to an executive order signed by President Joe Biden back in March. The reports from the U.S. Treasury include recommendations for intensified virtual currency enforcement and clearer guidelines from market supervisors.
President Joe Biden’s March 2022 EO on cryptocurrencies directed federal agencies to research digital assets and make recommendations on how to regulate the burgeoning industry while positioning the U.S. as a market leader.
One report submitted by the U.S. Treasury Department on Friday proposed bolstered digital asset enforcement, asking regulators to “double down” on probes and oversight. The agency further recommended clearer regulatory guidelines and additional policies from financial watchdogs.
A key recommendation made by the Treasury encouraged new rules and laws for crypto companies in addition to guidelines on existing rules. Crypto proponents have long since argued that regulators enforce vague policies.
The reports in response to President Biden’s EO could indeed pave the way for a better relationship between industry stakeholders and regulators as the U.S. seemingly pursues plans to incentivize digital asset innovation.