US Treasury Develops Framework For International Crypto Regulation• July 8, 2022 3:02 pm • Comments
As the crypto industry continues to expand, it seems that government entities are now realizing the significance of digital assets and are now proactively taking steps to regulate it on a global level.
At least, that is what the US Treasury is attempting to do as it recently released a fact sheet on how international crypto regulation could possibly work.
The sheet was produced as a result of President Joe Biden’s recent executive order on crypto and introduces a framework that is supposed to ensure the safety of the global financial system.
Of course, this will require the US to work with international partners on how to establish the guidelines for digital assets like CBDCs and other payment services.
NEW: @USTreasury developed a framework for international crypto regulation as a response to U.S. President Joe Biden's spring executive order on digital assets. @nikhileshde reportshttps://t.co/OLlDxm7Mlp
— CoinDesk (@CoinDesk) July 7, 2022
CoinDesk reports on the details:
“The United States must continue to work with international partners on standards for the development of digital payment architectures and CBDCs (central bank digital currencies) to reduce payment inefficiencies and ensure that any new payment systems are consistent with U.S. values and legal requirements,” the fact sheet said.
This work should address those concerns, the document noted.
“Additionally, the United States will promote the adoption and implementation of international standards through bilateral and regional engagements.
Across all engagements the United States will seek to ensure a coordinated message, limit duplication and encourage that work is maintained within its primary stakeholders,” the document said.
To support this work, the Treasury Department said the U.S. should hold “engagements” and other types of forums, the fact sheet said.
As part of future collaboration, the Treasury department said that it would also be working with regulators at the G7 on all issues related to digital assets.
When central banks and regulators across all nations are starting to see international initiatives like this one pop up, it just shows how far the industry has come.
There have also been talks about addressing the risks that it poses to investors and speculators are hoping that their definition of “protecting investors” is not the same as the SEC’s.
Examples include things like anti-money laundering, illicit transaction flows, and combating financing of terrorism regulations.
US Treasury Report: To Enforce Crypto Regulation, Global Governments Must Cooperate https://t.co/GFUkRfOXcN
— Times Of United (@TimesOfUnited) July 8, 2022
Other regulatory bodies the U.S. will use for engagement and coordination of crypto-related policy included the Financial Stability Board, Financial Action Task Force, Organization for Economic Cooperation and Development, International Monetary Fund, Federal Reserve Board forums for central banks at the Bank of International Settlement, the World Bank and other Multilateral Development Banks:
“The United States will explore opportunities for joint experimentation on digital assets technologies, market innovations and CBDCs, with this core set of allies and partners to increase our shared learning about ways to develop systems that meet our shared policy objectives.”
In addition to Treasury’s recommendations on a regulatory framework, the order requests the Federal Reserve to research the development of a central bank digital currency.
Based on the report, it looks like the role of CBDCs may be coming sooner than many think which will have a tremendous impact on all digital assets.
A framework for international collaboration was presented to US Vice President Joe Biden.
The framework's goal is to foster technical progress.#vipsfinstock #vipstoken #binance #shibainu #buyselltrade pic.twitter.com/ri5r3ZZYvY
— VIPS Finstock (@VIPS_Finstock) July 8, 2022
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