White House releases inaugural framework for crypto regulation
Categories: Crypto News
White House releases inaugural framework for crypto regulation
The White House has released the framework for cryptocurrency regulation based on the earlier executive order from President Biden. The framework — a combined effort of several federal agencies — offers several recommendations on regulating cryptocurrency, cracking down on crypto fraud, and bringing the financial services industry up to standard.
Digital Dollar plans
The framework mentions the possibility of a U.S. central bank digital currency(CBDC) project — the Digital Dollar. According to the report, such innovation could have significant benefits as it could create a more efficient payment system and lay the groundwork for technological innovations, among others. The framework stated that the CBDC “could promote financial inclusion and equity by enabling access for a broad set of consumers.”
Crypto and the broader economy
The framework expressed concerns about digital assets and how they are inter twined with the traditional financial market, which could lead to economic instability resulting from a contagion. The framework mentioned how Terra’s ecosystem crash showed how the industry could impact the broader financial system.
Per the report, there should be more regulations for stablecoins, and the U.S. Treasury will need to “work with financial institutions to bolster their capacity to identify and mitigate cyber vulnerabilities.”
Cryptocrimes
The framework also stated how malicious players use crypto for illegal activities and the need to eradicate this activity. “Digital assets have facilitated the rise of ransomware cybercriminals; narcotics sales and money laundering for drug trafficking organizations; and the funding of activities of rogue regimes.”