President Joe Biden in March signed the Executive Order on Ensuring Responsible Development of Digital Assets, directing the government to study cryptocurrency.
Six months later, after research into the cryptocurrency industry, the White House on Friday published its first-ever comprehensive framework for the responsible development of digital assets that outlined the findings and suggestions of multiple government departments.
The resulting report did not establish any new laws but gave a clearer picture of how crypto regulations in the U.S. will be handled.
Sections of the framework include "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. Central Bank Digital Currency (CBDC)."
The framework gave regulators permission to continue coordinating efforts to enforce the law in the sector and exchange information on consumer complaints. Examples of these regulators were the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Through data exchange and analysis, the U.S. Treasury would actively engage financial institutions in helping to detect and reduce cyber threats.
In order to ensure crypto companies had regulatory guidance, the Treasury was also charged with collaborating with regulatory authorities.
Through international institutions such as the Financial Stability Board (FSB) and the Organization for Economic Co-operation and Development (OECD), the Treasury would extend this responsibility to American allies.
By the end of February 2023, the Treasury should have finished its assessment of the danger of illicit financing associated with decentralized finance, and by the end of July 2023, it should have finished its evaluation of non-fungible tokens, according to the recommendations.
In order for the Bank Secrecy Act, rules against tipoffs and laws against unlicensed money transmission to specifically apply to providers of digital asset services — such as digital asset exchanges and non-fungible token (NFT) platforms — Biden will have to make a decision, then potentially ask Congress for its thoughts.
According to the fact sheet, there were opportunities to make sure blockchain technology supports "a net-zero emissions economy and increasing environmental justice."
The sheet added that "the President will evaluate whether to call upon Congress to amend the Bank Secrecy Act, anti-tip-off statutes, and laws against unlicensed money transmitting to apply explicitly to digital asset service providers — including digital asset exchanges and nonfungible token (NFT) platforms."
In a clear reference to Bitcoin's proof-of-work model, the White House Office of Science and Technology Policy stated earlier this month that crypto miners should reduce greenhouse gas emissions and suggested Congress may consider legislation to "limit or eliminate" high energy intensity consensus mechanisms.
The report also referred to "a potential U.S. CBDC" and listed numerous significant potential advantages for technology, the economy, security and individual liberty.
Produced in association with Benzinga.
This story was provided to Newsweek by Zenger News.
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