White House Launches Digital Asset Regulatory Framework – Bitcoin Magazine
The White House has published a legal framework for engaging with bitcoin and cryptocurrencies in the United States following a “whole of government” executive order (EO) from President Joe Biden earlier this year, according to an official press release.
The “Ensuring Responsible Development of Digital Assets” EO called on government agencies to produce various forms of research regarding consumer privacy and protection, energy use, and benefits and risks of central bank digital currency (CBDC).
According to the research provided, the White House intends to give the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) the power to “aggressively pursue investigations” in the digital asset space.
In addition, Biden’s administration will push the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) to “redouble their efforts to monitor” the ecosystem for “unfair, deceptive or abusive practices.”
However, it is unclear what will make it possible to determine whether or not these agencies will start monitoring for the aforementioned malicious behavior.
The framework also encourages agencies to begin accepting “instant payment systems,” such as FedNow and the consideration of regulating non-bank payment providers.
Furthermore, the National Science Foundation (NSF) will research “technical and socio-technical disciplines and behavioral economics” to understand digital asset ecosystems.
According to a recent report from the White House Office of Science and Technology Policy (OSTP), the Department of Energy (DoE) and the Environmental Protection Agency (EPA) are tasked with “tracking digital assets’ environmental impacts; developing performance standards as needed; and providing local governments tools, resources and expertise to reduce environmental damage.”
In addition, the Bank Secrecy Act will be amended to apply to digital assets, leading to greater fines for unlicensed money transfers and stricter enforcement against providers of digital asset services.
In addition, the US Department of the Treasury will complete a risk assessment regarding Decentralized Finance (De-Fi).
Finally, the Biden administration has developed “Policies for a US CBDC System,” which outlines the government’s priorities regarding the issuance of a digital dollar. However, the release states that “further research is needed”.
Agencies selected to lead the ongoing task force on research and possible development of a CBDC include the Federal Reserve, the National Economic Council, the National Security Council, the Office of Science and Technology Policy, and the Treasury Department.
