Just six months after U.S. president Joe Biden issued an executive order regarding the same issue, the White House now has its "first-ever comprehensive framework" for responsible development of digital assets. One leader in crypto has expressed concern at the White House's lack of clarity and understanding about the technology.
Reaffirming the United States' Leadership in the Global Financial System
Six months after U.S. President Joe Biden signed an Executive Order, (EO), outlining the government’s multi-pronged approach to digital assets, the White House unveiled, on September 16, what it called the "first-ever comprehensive framework" for digital asset development.
The White House explained that the decision by the Biden Administration to release the framework was made because digital currencies have the potential to "reinforce U.S. leadership" in the global financial market. However, they still present risks for investors and consumers as demonstrated by the May crash of the crypto market.
To protect millions of Americans, including those who have digital assets, the U.S. government has developed frameworks to support six priorities identified in the EO. The March 9 EO identified six priorities: consumer and investor protection; financial stability; countering illicit financing; leadership of the United States in the global financial sector, financial inclusion and responsible innovation.
The White House fact sheet states that nine reports have been submitted to President Biden. They outline a clear framework for responsible digital assets development and pave the way for further actions at home and abroad. The nine reports, which advocate for an orderly digital asset growth, also identify the roles that government agencies should play in aiding American companies.
"The reports urge agencies to encourage innovation by encouraging private-sector research, development, and helping cutting-edge U.S. companies find footholds on global markets. The White House fact sheet states that they also call for measures to reduce the downside risks like the enforcement of existing laws and the creation commonsense efficiency standards for crypto mining.
The White House reports that the nine reports are not limited to digital currencies privately issued or created, but also urge the U.S. Federal Reserve to "continue its ongoing CBDC [central banks digital currency] research and experimentation."
Perceived lack of clarity
Sheila Warren (CEO of Crypto Council for Innovation) lamented that some of the recommendations did not provide enough clarity or understanding about the technology. She pointed out:
This is not surprising considering the clear directives from the EO, and the work of Members of Congress to move the matter forward. Enforcement is not regulation. By regulating by enforcement, other countries have the ability to see how the technology works in their favor, even if it is not the U.S.
Warren referenced a September 15 U.S. Senate Committee hearing that was convened to examine the Digital Commodities Consumer Protection Act. The CEO stated that the hearing's leaders were concerned about the possibility of other countries taking over the U.S.
Warren concluded her remarks by stating that her organization is ready to assist U.S. lawmakers in understanding the digital asset market, which she described as "a complex and nuanced area."
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By: Terence Zimwara
Title: White House Releases ‘First-Ever’ Framework for Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear
Sourced From: news.bitcoin.com/white-house-releases-first-ever-framework-for-digital-asset-development-crypto-industry-leader-says-recommendations-are-unclear/
Published Date: Sat, 17 Sep 2022 09:30:36 +0000