- The White House released the first-ever comprehensive framework for crypto regulations.
- The comprehensive framework for crypto aims to protect consumers, investors, businesses, financial stability, national security, and the environment.
- The US government has worked to develop frameworks and policies on six key priorities.
Today, The White House, under the Biden-Harris administration, released the first-ever comprehensive framework for crypto regulations. Following President Joe Biden’s Executive Order (EO), the comprehensive framework for responsible development of digital assets aims to protect consumers, investors, businesses, financial stability, national security, and the environment.
The US government has worked to develop frameworks and policies on six key priorities. The six key priorities identified in the EO are: consumer and investor protection, promoting financial stability, countering illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation.
According to the fact sheet produced by the White House:
Digital assets present potential opportunities to reinforce U.S. leadership in the global financial system and remain at the technological frontier. But, they also pose real risks as evidenced by recent events in crypto markets.
Furthermore, the main reason for these crypto frameworks is to promote innovation by kickstarting private-sector research and development. The government also hopes to mitigate the downside of risks by increasing enforcement of the existing laws and creation of “commonsense” efficiency standards for cryptocurrency mining.
Additionally, the government also believes in the potential benefits and risks of a U.S. Central Bank Digital Currency (CBDC). The Biden-Harris administration is encouraging the Federal Reserve to continue its ongoing CBDC research, experimentation, and evaluation and call for the creation of a Treasury-led interagency working group to support the Federal Reserve’s efforts.
The framework was released six months after an EO was issued in March, in which President Biden called on federal agencies to examine the risks and benefits of cryptocurrencies.