White House Releases Bitcoin, Crypto Regulatory Framework

The White House published the framework for CBDC development, strict regulation and compliance to the ecosystem in response to the executive order of U.S. President Biden.

Following an executive order from the "whole government", the White House published a legal framework to allow U.S. citizens to engage with Bitcoin and other cryptocurrencies. According to an official press release, President Joe Biden issued a legal framework for engaging with bitcoin and cryptocurrencies in the U.S. earlier this year.

E.O. "Ensuring Responsible Digital Asset Development" The "Ensuring Responsible Development of Digital Assets" E.O. called for government agencies to conduct research on consumer privacy and protection, energy use, and the benefits and risks of central bank digital currency (CBDC).

According to the research, the White House plans to give the Securities and Exchange Commission and the Commodities Futures Trading Commission (CFTC) the authority to "aggressively pursue investigation" in the space of digital assets.

Biden's administration will also push the Consumer Financial Protection Bureau and Federal Trade Commission to "double their efforts to monitor the ecosystem" in relation to "unfair deceptive or abusive practices."

It is not clear what will enable these agencies to determine if they will start monitoring for the above malicious behavior.

The framework calls for agencies to accept instant payment systems such as FedNow, and considers regulating non-bank payment providers.

The National Science Foundation (NSF), will also conduct research in "technical, socio-technical disciplines" and behavioral economics to better understand digital asset ecosystems.

A White House Office of Science and Technology Policy (OSTP) report has revealed that the Department of Energy and the Environmental Protection Agency have been given the task of "tracking digital assets environmental impacts; developing performance standards where appropriate; and providing local authorities the tools, resources and expertise to mitigate any environmental harms."

The Bank Secrecy Act, which will apply to digital assets, will also be amended. This will result in higher fines for unlicensed money transfers, and tighter enforcement against providers of digital asset services.

The U.S. Treasury will also complete a risk assessment in relation to decentralized finance (DeFi).

Biden's administration also created "Policies to a U.S. CBDC System", which details the government’s priorities in relation to the release of a virtual dollar. The release says that more research is required.

The Federal Reserve, National Economic Council, National Security Council, Office of Science and Technology Policy and Treasury Department were selected to lead the ongoing work group in the development and research of a CBDC.

By: Shawn Amick
Title: White House Releases Bitcoin, Crypto Regulatory Framework
Sourced From: bitcoinmagazine.com/legal/-white-house-releases-digital-asset-regulatory-framework
Published Date: Fri, 16 Sep 2022 13:13:15 GMT

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