The White House has unveiled its Digital Asset Development Framework, which outlines the benefits and risks of cryptocurrencies in the United States.
Until this week, there was no clear regulatory framework for cryptocurrencies in the United States. Today, the White House published its first cryptocurrency regulatory framework. Although it is still subject to reforms and considerations, it is an important advance. The investigators appointed in March by President Joe Biden have had six months to issue the first report and regulatory framework.
Regulatory Framework Highlights
The regulatory framework is the result of the joint work of different federal agencies to achieve the objectives requested by the president in his executive order. The main objective of the commission was to investigate the risks and benefits of cryptocurrencies and to issue official reports about them.
The framework describes ways and means of proceeding by companies and users for a positive development of the environment. That is, to achieve transfers without borders, as well as an environment free of illicit transactions or fraud.
The new directives highlight the use of existing federal agencies. This could save the bureaucracy and processes before Congress. However, it is still necessary for the president to decide whether to put it to a vote in Congress.
In particular, two federal agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission are listed in the regulatory framework, although nothing is established yet, and dependencies are under development. Washington’s long-awaited decision to regulate cryptocurrencies has been long overdue, and now, the whole industry is watching intently.
The specialized team has been working on its own regulatory frameworks and policy recommendations. In addition, a list of half a dozen priorities was created on the basis of the priorities listed by the executive order.
On the other hand, this regulatory framework lays out paths to follow for the United States government, so as to maintain its fundamental role in the world economic system, while working towards financial inclusion. The aim of these guidelines is to position the United States as a leader in the industry and establish new governance in digital assets.
The Fight Against Illicit Activities
This effort by the United States to create a regulatory framework for cryptocurrencies is due to illicit activities, from tax evasion to drug trafficking or financing terrorist organizations. All of these highly government-monitored activities affect the Blockchain and cryptocurrencies.
Although the privacy and anonymity of cryptocurrencies were not intended for criminal activities, it has been developed that way. To carry out this fight, the commercial framework of cryptocurrencies must be regulated.
Likewise, President Joe Biden is studying a proposal where sanctions for the transmission of money without a license can be increased. In this sense, the modification of federal statutes that allow the Department of Justice of the United States to act in any jurisdiction, regardless of where the victim is, is also considered.
The framework released today also looks at the potential and “significant benefits” of central bank-issued digital currencies. This could be considered a particular form of digital US dollar. Although there are already coins of this type called stablecoins, such as USDT and USC, they are basically cryptocurrencies pegged to the value of the dollar with a backing.
By Audy Castaneda