On Friday, the White House released the “First-Ever Comprehensive Framework for Responsible Development of Digital Assets.” The framework outlines the conclusions and future recommendations about the crypto space. Several US authorities carried out research on the crypto industry for six months. Therefore, this framework is finalized upon their research findings.
Earlier this year, President Joe Biden gave an executive order to carry out research on crypto. However, the framework released by the White House does not map out any new legislation for the digital asset industry. But it gives a clear way forward for US crypto regulations. Several government stakeholders, industry experts, academic researchers, and members of civil society contributed to the comprehensive framework of the White House.
White House Advises Agencies to Address Gaps in Crypto Regulations
The concerns laid out by the White House ranged over several issues. These include consumer protection, environmental sustainability, and national security. However, it further stated that the US should play a role in promoting innovation in the private sector. Moreover, the country should also play a role to encourage international level cooperation.
Furthermore, the White House also urged that regulators like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) should play an increased role to implement rules and regulations in the space. They shall also share more data on consumer complaints.
Furthermore, the US Treasury will play a role in collaborating with other financial institutions to eliminate any potential risks of the cyber world. They will do so by sharing data and analyzing information with other authorities. Lastly, regulators will have to engage with cryptocurrency firms and companies and ensure that they comply with regulatory guidance and laws.
According to the framework shared by the White House, the US Treasury will be tasked to work with US allies. The authority will engage with international organizations, including the Organization for Economic Cooperation and Development (OECD) and the Financial Stability Board (FSB). Moreover, the US Treasury will have to present a report on DeFi risk assessment by February 2023. Later, it will give a similar assessment on NFTs by July 2023.
In addition, President Biden will oversee recommendations to come up with a framework for evaluating non-bank payment providers. This is a major development for the crypto community of the United States. The framework presented by the White House outlines the way forward for crypto regulations at a mass level.