Biden Administration Unveils New Framework for ‘Responsible Development’ of Crypto Assets
The White House unveils new comprehensive guidelines for the responsible development of crypto assets in the US economy.
In a new press release, the Biden administration unveils the first-ever framework for digital asset development.
The guidelines were created using information gathered after Biden issued an executive order in March mandating that government agencies examine the pros and cons of crypto and blockchain technology.
“The nine reports submitted to the President to date, consistent with the executive order’s deadlines, reflect the input and expertise of various stakeholders across government, industry, academia, and civil society.
Together, they articulate a clear framework for the responsible development of digital assets and pave the way for further action at home and abroad.”
To promote responsible innovation in the crypto world, the White House recommends developing a digital asset research and development agenda to study next-generation scalability, programmability, cybersecurity, and ways to make digital assets more environmentally friendly.
It also recommends educating stakeholders on how to safely invest in crypto assets.
Furthermore, the guidelines ask federal agencies to contribute to the development of virtual currencies.
It calls on the Treasury Department and other financial regulators to “provide innovative US firms developing new financial technologies with regulatory guidance, sharing of best practices and technical assistance.”
It also calls on the Department of Energy and the Environmental Protection Agency (EPA) to “consider additional tracking of digital assets’ environmental impacts; develop performance standards as appropriate; and provide local governments with tools, resources and expertise to reduce environmental harm.”
Finally, the framework will ask the Department of Commerce to establish a forum where federal agencies, crypto firm executives, and academics can gather to exchange ideas that could influence crypto policy.
The White House is also focused on combating predatory financial practices and illegal activities centered around digital assets.
“Some digital assets can help facilitate faster payments and make financial services more accessible, but more work is needed to ensure they truly benefit underserved consumers and do not lead to predatory financial practices.”
To counter illegal activities, the Biden administration is asking Congress to amend existing laws to better apply to digital assets.
“The President will consider whether to urge Congress to amend the Bank Secrecy Act (BSA), anti-tip-off statutes, and laws against unlicensed money transmission to apply explicitly to providers of digital assets – including exchanges of digital assets and non-fungible token platforms (NFT).
He will also consider urging Congress to raise the penalties for unlicensed money transmission to match the penalties for similar crimes under other money laundering laws and to amend relevant federal statutes to allow the Department of Justice to prosecute digital asset crimes in any jurisdiction where a victim of these crimes has been found.”
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