White House Friday Unveiled A new framework for regulating digital assets including cryptocurrencies, including increased surveillance and exploring the creation of a potential digital US dollar, could mark the Biden administration’s most significant effort to establish a policy to regulate crypto assets. marks.
Recognizing the risks faced by crypto consumers, the framework urges the Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to “aggressively investigate” illegal practices.
The framework calls on the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) to redouble efforts to tackle consumer complaints against deceptive practices by crypto companies.
To prevent the use of crypto for money laundering and terror financing, President Joe Biden may propose a possible expansion of the Bank Secrecy Act (BSA) to include cryptocurrencies and non-fungible tokens (NFTs).
The Treasury Department is conducting an “illicit finance risk assessment” on decentralized finance (DeFi) platforms and a separate one on NFTs – expected to be completed by February 2023 and July 2023, respectively.
One of the framework’s most important proposals is assessing the creation of a US Central Bank digital currency or a digital US dollar – an area in which China has built. remarkable progress– It can enable faster and simpler cross-border transactions.
In an effort to make the digital economy more equitable, the framework calls for expanded adoption of “instant payment services” and the establishment of regulatory policies for “non-bank” payment platforms.
one in Statement Released by the White House, National Economic Council Director Brian Deez and National Security Adviser Jake Sullivan said the framework intended the US to "take a leading role in the innovation and governance of the digital asset ecosystem both at home and abroad and in a way". Is. that protects consumers, is consistent with our democratic values, and advances American global competitiveness." He added that the White House seeks "continuous engagement with allies and partners on these issues, which contribute to American technological and technological development globally." Will strengthen financial leadership."
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The Treasury will work closely with financial institutions to "identify and mitigate cyber vulnerabilities," while other federal agencies such as the Environmental Protection Agency and the Department of Energy will be tasked with investigating the environmental impact of digital assets such as cryptocurrencies.
Friday's announcement came after Biden released executive Order In March it asked several federal agencies to investigate the risks and opportunities of digital assets like cryptocurrencies and prepare reports based on their findings. After explosive growth over the past two years, 2022 has been a volatile year for cryptocurrencies, with the value of the popular token falling to less than a third of its historical high. The collapse of the algorithmic stablecoin TeraUSD in May led to a crypto crash in the market. Bitcoin is currently valued at $19,864, down more than 1.5% over the past 24 hours and more than 70% from last year's all-time high of $68,990.
Ethereum, one of the world's largest blockchains that powers Ether (ETH) - the world's second largest cryptocurrency - completed an update to its system on Thursday. The update, known as a "merge", switches the blockchain and tokens to a more environmentally friendly mode of operation called "proof-of-stake", where token holders use a portion of their ETH to validate transactions in exchange for a reward. stake can be staked. Ethereum previously relied on a "proof-of-work" model, where crypto miners could use their computers to perform complex calculations and validate transactions and earn ETH tokens. Ethereum argues, proof-of-stake would be far more environmentally friendly than the energy-hogging proof-of-work method, which faces opposition from environmental groups and lawmakers. However, hours after the "merge" SEC Chairman Gary Gensler warning that betting ETH for returns may constitute a transaction under US security laws.
Credit: www.forbes.com /