Six months after the review, what is the government plan with the crypto regulations? -PrivacySwap.Finance
Cryptocurrency regulation had been a hot topic ever since it came out and became popular. We recently covered on this site that the US government is seeking help to identify what are the concerning parts of blockchain technology. Now that six months have passed, what are the regulations the government had and will implement for blockchain technology?
The White House released the “First-Ever Comprehensive Framework for Responsible Development of Digital Assets,” which summarizes the findings and recommendations of various federal agencies after six months of research into the crypto industry.
President Biden issued the directive to conduct crypto research in an executive order signed in March of this year. Today’s “Comprehensive Framework,” like the executive order, does not establish any new legislation but provides a clearer vision of US crypto regulation.
The new framework claims to reflect “the input and expertise of diverse stakeholders across government, industry, academia, and civil society” and is based on research from nine reports submitted to the President since the order.
Their concerns are broad, and their recommendations go beyond the obvious (such as consumer protection, the environment, and national security), to solidify the United States’ role as a global crypto frontrunner by encouraging private-sector innovation and international cooperation.
The framework is divided into sections titled “Protecting Consumers, Investors, and Businesses,” “Promoting Access to Safe, Affordable Financial Services,” “Fostering Financial Stability,” “Advancing Responsible Innovation,” “Reinforcing Our Global Financial Leadership and Competitiveness,” “Fighting Illicit Finance,” and “Exploring a U.S.-Based Financial System.” “CBDC” stands for “Central Bank Digital Currency.”
The suggested changes
The framework authorizes regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to continue coordinating efforts to enforce industry law and share data on consumer complaints.
Through data sharing and analysis, the US Treasury will play an active role in assisting financial institutions in identifying and mitigating cyber risks. It is also responsible for collaborating with regulators to ensure that crypto firms have regulatory guidance.
Through international organizations such as the Organization for Economic Cooperation and Development (OECD) and the Financial Stability Board, the Treasury will extend this role to US allies (FSB).
The Treasury expects to complete an illicit finance risk assessment on decentralized finance by the end of February 2023, and a non-fungible token assessment by July 2023.
President Biden will have to decide “whether to request that Congress amend the Bank Secrecy Act, anti-tip-off statutes, and laws against unlicensed money transmitting to explicitly apply to digital asset service providers — including digital asset exchanges and nonfungible token (NFT) platforms.”
According to today’s fact sheet, there are “opportunities” to align blockchain technology with “a net-zero emissions economy and improving environmental justice.”
The White House Office of Science and Technology Policy stated earlier this month that crypto miners should reduce greenhouse gas emissions and suggested that Congress consider legislation to “limit or eliminate” high energy intensity consensus mechanisms, a clear reference to Bitcoin’s proof-of-work model.
The report also mentions “a potential U.S. CBDC,” citing many profound potential benefits in technology, the economy, security, and individual liberty; however, efforts in this direction are limited to a set of policy objectives for a U.S. CBDC, as well as an “interagency working group” led by the Treasury “to consider the potential implications of a U.S. CBDC, leverage cross-government technical expertise, and share information with partners.”
As one of the most influential countries starts to provide clear regulation on Cryptocurrency, the world will gradually follow. Since inflation had become a great issue recently worldwide, it is good that there are a few steps that are implemented to mitigate the crypto situation and ensure that crypto transactions remain legal and lawful. As the world might soon follow these regulations suggested by the US government, the crypto environment, without a doubt, will become a safe place to transact
PrivacySwap is a platform that always promotes safe and secure crypto transactions. Hence, why we choose Privacy in our name. As we are getting closer to the release of our features such as the debit card and the affiliate system, we always ensure that we are abiding by the rules and regulations of every country. With our Whitelabel, we guarantee that whatever platform partners with us follow the law of a certain country. doing this would help us to create our platform usable to every part of the world.
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