White House Unveils the First-Ever Comprehensive Framework on Crypto Regulation
- The First-Ever Complete Plan for Appropriate Development of Digital Assets was released by the White House today.
- Three documents were also made available by the Treasury at the same time in order to follow President Biden’s Executive Order from six months ago.
The American government is now working to strengthen regulatory oversight of the digital asset market.
After six months of research into the cryptocurrency business, the White House today unveiled a “First-Ever Comprehensive Framework for Responsible Development of Digital Assets” that outlines the findings and suggestions of multiple federal departments.
The market for digital assets has expanded considerably in recent years. Digital assets, with a market valuation of $3 trillion last November, have been bought by millions of people throughout the world, including 16% of adult Americans.
The action comes in response to President Biden’s March executive order on “Ensuring Responsible Development of Digital Assets.”
In a joint statement, NEC Director Brian Deese and National Security Advisor Jake Sullivan said, “Together, we are setting the framework for a smart, holistic approach to reducing digital assets’ acute vulnerabilities and—where proven—harnessing their benefits.”
The White House‘s new framework for crypto regulation includes a section on combating criminal behavior in the sector, and the suggested restrictions seem to have some actual bite.
According to a sheet, “The President will evaluate whether to request that Congress amend the Bank Secrecy Act, anti-tip-off laws, and laws against unlicensed money transmitting to apply explicitly to digital asset service providers—including digital asset exchanges and nonfungible token (NFT) platforms).“
The new framework allegedly reflects “the input and experience of numerous stakeholders across government, industry, academia, and civil society” and is based on research from nine reports that have been presented to the President since the decree.
The Administration intends to take the following additional actions, which are detailed in the reports made public today:
- The reports push regulatory bodies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to vigorously pursue inquiries into and enforcement actions against illegal acts in the digital assets sector.
- The reports urge the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB), when necessary, to step up their efforts to monitor consumer complaints and to take enforcement action against unfair, misleading, or abusive activities.
- The papers urge government bodies to develop guidelines and regulations to address existing and new dangers in the ecosystem for digital assets. Regulatory and law enforcement organizations are advised to work together to address the serious hazards associated with digital assets that affect customers, investors, and enterprises.
- The Financial Literacy Education Commission (FLEC) will take the lead in raising public understanding of the hazards associated with digital assets, common fraudulent tactics, and how to report wrongdoing.
The fact sheet states that the Treasury will finish its assessment of the risk of illegal finance related to decentralized finance by the end of February 2023 and its examination of non-fungible coins by the end of July 2023.
The fact sheet published today acknowledges that there is “potential” to make blockchain technology compatible with “an economy with net-zero emissions and improved environmental justice.”
The most recent White House statement is the most convincing evidence yet that the government intends to assist the development of digital assets in a safe and secure manner.
The new actions demonstrate that the United States sees potential in cryptocurrency and blockchain technology, despite President Biden and the various White House agencies previously being slow to act on crypto growth.