The White House alluded to the volatility of cryptocurrencies and a recent decline that has led to problems throughout the crypto landscape in a series of new reports issued on Friday, September 16, regarding its first-ever framework for crypto regulation in the United States. Notably, the framework describes the methods in which the financial services sector could change to make borderless transactions more straightforward, as well as how to clamp down on fraud in the area occupied by digital assets. According to a statement made by the Biden administration:
The new directives in the framework
The new guidelines rely on existing authorities such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, no mandates have been issued as of yet. However, the long-awaited guidance from Washington has captivated the interest of both the crypto sector as a whole and investors in this new asset class. The White House’s new framework for regulating cryptocurrencies includes a part that focuses on eliminating criminal activities in the market, and the measures that have been suggested look to have some real substance to them. The new reports, among other recommendations, demand for financial authorities to tighten down on illegal operations and to “address current and emergent risks.” National security adviser Jake Sullivan and Brian Deese, director of the National Economic Council, said in a statement:
New digital dollar
The framework also refers to the possibility of “significant benefits” from using a central bank digital currency (CBDC) issued by the United States government comparable to a digital version of the United States dollar. In addition, the administration recommends that the Consumer Financial Protection Bureau and the Federal Trade Commission “redouble their efforts to monitor consumer complaints and to enforce against unfair, deceptive, or abusive practices.” The administration has been pushing Congress to provide regulators with more specific direction. In June, Kirsten Gillibrand, a Democrat for New York, and Cynthia Lummis, a Republican for Wyoming, presented a proposal to establish a regulatory framework for digital assets. The new instructions are in response to an executive order published in March and signed by President Biden. In that order, the President requested that government agencies investigate the advantages and disadvantages of crypto and then publish public reports on their findings to promote the “responsible development of digital assets.”
