Blockchain Association Calls White House Crypto Framework A “Missed Opportunity”

Members of the crypto space and advocacy groups reacted to US President Joe Biden’s administration’s announcement of a regulatory framework for digital assets, with many criticizing the White House’s focus on the potential downsides of crypto. I suggested that there is

In a statement Friday, the White House said federal agencies and departments had submitted nine reports required by Biden’s executive order on crypto from March. It included policy objectives for banks’ digital currencies, ways to mitigate the climate impacts of cryptocurrency energy use, regulatory objectives for enforcement actions, rules to address risks, and consumer protection.

The Biden administration said the Treasury Department would report by February 2023 on “illegal financial risk assessments related to decentralized finance,” and that federal agencies would “continue to expose and sabotage wrongdoers and exploit digital assets.” We will deal with it,” he added. Additionally, the White House said the Federal Reserve will support a payment system similar to FedNow, which he plans to launch in 2023.

Crypto analyst Dylan LeClaire and MicroStrategy co-founder Michael Thaler criticized The government’s stance on Twitter, claim It used environmental concerns as an excuse to expand control over its digital assets.

“If you don’t like how someone uses their energy, pay a higher price than they do.” […] Hysterical screeching about climate change will not stop the next block from being mined. ”

“Today’s report and summary from the Biden administration’s Executive Order on Digital Assets is a missed opportunity to strengthen U.S. crypto leadership,” said Christine Smith, executive director of the U.S.-based Blockchain Association. . “Although intended to be part of a broader government and stakeholder effort to bring about better regulation of crypto-assets, these reports focus on risks rather than opportunities, and the US It omits substantive recommendations on how the burgeoning crypto industry can be promoted.”

The framework proposed by the White House is shameful.

– A clear attack on proof of work by implying that it sets environmental standards for mining.
– Push FedNow via crypto
– Frame everything as a potential scam or threat
– Highlights volatility and consumer risk

— All Street Wolves (@scottmelker) September 16, 2022

Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said the policy recommendations appear to be based on an “outdated and unbalanced understanding” of cryptocurrencies, and that other lawmakers and the incoming administration will not provide more details. He said a decision could be made.

“At yesterday’s hearing [on regulating crypto], many seemed concerned about other countries overtaking the United States. If we enforce regulation, it will also give other countries a clear runway to understand how the technology works to their benefit, which the United States may be against.”

Related: Crypto Policy Advocacy Group Warns of ‘Disastrous’ Clauses in New US Bill

A report on establishing a comprehensive regulatory framework for cryptocurrencies in the U.S. was some of the first requested since President Biden announced the order in March, but the work is still done. No. The Treasury Department and Federal Reserve continue to investigate the impact of the release of the digital dollar. The White House said the Financial Stability Oversight Council will issue a report on financial stability risks to digital assets and related regulatory gaps in October.