White House Releases a Framework for Digital Asset Regulation
The Biden administration is getting closer to creating a digital currency for the United States, claiming that doing so will help the country further cement its position as the world’s financial leader.
The framework for regulating digital assets, such as cryptocurrencies and other things of value that only exist in digital form, was unveiled on September 16th. The framework contains measures to simplify the management of these assets and guarantee the integrity of the digital asset sector.
In the shape of a comprehensive framework based on the “responsible development of digital assets,” the White House has now proposed remedies. This framework defines the concrete next actions that will be implemented, such as:
- Regulators are intensifying their inquiries into illegal activity on the digital asset market, stepping up their enforcement of current laws, and improving interagency cooperation.
- The Financial Literacy Education Commission is spearheading initiatives to raise public understanding of the hazards associated with digital assets and assist customers.
- The Environmental Protection Agency, the Department of Energy, and other organizations are monitoring “the environmental impacts of digital assets, developing performance standards as necessary, and supplying local authorities with the instruments, materials, and know-how to mitigate environmental harms.”
Many people in the industry were afraid of outright bans when the White House issued an executive order in March urging all crypto-dependent companies to transition to a more sustainable life. With the release of the current framework, it is evident that the government is more focused on promoting sustainable growth than it is on outlawing certain devices or methods of communication.
Lastly, the framework states that establishing a U.S. Central Bank Digital Currency (CBDC) in order to combat fraud and illegal activity might enable a payment system that is “more effective, offers a platform for further technical innovation, promotes speedier cross-border transactions, and is ecologically sustainable.” According to the framework, it might “promote financial inclusion and fairness by facilitating access for a broad group of customers.”
Complete information about the new framework will be available here.