White House Releases Crypto Regulatory Framework

September 16, 2022 10:33 pm

Earlier in the year, President Biden had signed an executive order to look into crypto and create proposals on how to engage cryptocurrencies from a regulatory perspective.

Following that order, the White House has finally published a new legal framework on how to deal with digital assets called “Ensuring Responsible Development of Digital Assets”.

According to the research within this report, it looks like the White House intends to continue to allow the SEC and the CFTC to enforce regulatory actions within the crypto industry.

The report also mentions the need to double down on preventing illegal activity within the crypto space, but it is unsure whether the CFTC or the SEC will be responsible for doing this.

BitcoinMagazine reports:

In accordance with the research provided, the White House intends to empower the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) to “aggressively pursue investigations” in the digital asset space.

Additionally, Biden’s administration will push the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) to “redouble their efforts to monitor” the ecosystem as it relates to “unfair, deceptive, or abusive practices.”

However, it is unclear what enables the determination of whether or not these agencies will begin monitoring for the aforementioned malicious behavior.

Continuing on, the framework also calls on agencies to begin accepting “instant payment systems,” such as FedNow and the consideration of regulating non bank payment providers.

Multiple government departments will also have a role to play in this new legal framework that the White House just released which includes the Department of Energy and the Environmental Protection Agency.

Both of these departments will likely drive future guidelines on how digital assets should be treated within their respective areas.

Apparently, the US Treasury department will also do a risk assessment on digital assets with the most obvious and alarming topic being the potential use of central bank digital currencies (CBDCs).

So far, this has attracted the most attention and the leading CBDC solutions provider Ripple is currently in a lawsuit with the SEC.

BitcoinMagazine concludes:

Also, the U.S. Treasury department will complete a risk assessment as it relates to decentralized finance (De-Fi).

Finally, Biden’s administration has developed “Policies for a U.S. CBDC System,” which details the government’s priorities as it relates to the release of a digital dollar. However, the release states that “further research is needed”.

Agencies that were chosen to lead the ongoing working group for the research and possible development of a CBDC include the Federal Reserve, the National Economic Council, the National Security Council, the Office of Science and Technology Policy, and the Treasury Department.

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