International Crypto Regulation Framework
The US Treasury Department published a fact sheet on Thursday detailing possible relationships with global regulators to address the cryptocurrency industry. The report is the department's first output in response to President Biden's executive order on digital assets.
The policy objectives of the framework, according to the sheet, include ensuring that America's fundamental democratic values are adhered, protecting consumers, investors, and businesses, ensuring the connectivity and security of the global financial system, reducing the possibility of illegal finance, promoting access to financial services, enabling technological advancement, and maintaining U.S. leadership in the system.
The fact sheet stated that in order to reduce payment inefficiencies and guarantee that any new payment systems are compliant with American values and legal requirements, the United States must continue working with international partners on standards for the development of digital payment architectures and CBDCs (central bank digital currencies). The document also stated:
"Additionally, the United States will promote the adoption and implementation of international standards through bilateral and regional engagements. Across all engagements, the United States will seek to ensure a coordinated message, limit duplication, and encourage that work is maintained within its primary stakeholders"
The paper emphasized that this operation should take care of those concerns. The Treasury Department recommended holding engagements and other types of forums to support this work.
Biden's Executive Order on Digital Assets
With the first executive order, US President Joe Biden directed federal agencies to coordinate their activities on drafting cryptocurrency regulations. Although it does not specify any particular views the administration wants federal agencies to adopt, the executive order instructs agencies to effectively promote their work in the digital asset sector. The order made no mention of any fresh regulations that crypto companies must follow.
The federal government has been working to regulate the crypto industry, with a special focus on investor protection, financial stability, illegal uses, leadership in the international financial sector, financial inclusion, and responsible innovation. The official said:
“At the same time, however, digital assets can also provide opportunities for American innovation and competitiveness and promote financial inclusion, Innovation is central to America's story and our economy, generating jobs and opportunities, creating and building new industries, and sustaining our global competitive edge and leadership.”
Six key priorities for the administration are listed in an executive order: protecting US interests, maintaining global financial stability, preventing illegal uses, encouraging responsible innovation, promoting financial inclusion, and upholding US leadership. Almost 16 percent of Americans have either purchased or are trading cryptocurrencies.
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