White House Releases ‘First-Ever’ Framework For Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear — Regulation Bitcoin News

The White House has announced a “first-ever” comprehensive framework for the responsible development of digital assets, just six months after US President Joe Biden signed an executive order on the same issue. However, one of the leaders of the cryptocurrency industry lamented the lack of clarity and understanding of the technology described in his White House fact sheet.

Strengthening U.S. Leadership in the Global Financial System

Just 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 announced on September 16, “For Developing Digital Assets. announced what it calls the first-ever comprehensive framework for “

The White House explains the Biden administration’s decision to release the framework, saying digital currencies may have the potential to “strengthen U.S. leadership in the global financial system,” but the crypto market crash. said it still poses risks to investors and consumers, as evidenced by May.

Therefore, in order to protect the millions of people, including US residents, who acquire digital assets, US government agencies have developed a framework that drives six key priorities identified in the EO. The six key priorities identified at the March 9 EO are consumer and investor protection, financial stability, combating financial corruption, U.S. leadership in the global financial system, and financial inclusion. is responsible innovation.

According to the White House fact sheet, “responsible digital asset development and [paving the] A Path to Further Action at Home and Abroad” was then submitted to President Biden. In addition to advocating for the orderly development of digital assets, the nine reports are also said to identify the role government agencies should play in helping American businesses.

“The report calls on agencies to foster innovation by initiating private sector research and development and helping cutting-edge U.S. companies find a foothold in global markets. We are calling for steps to mitigate downside risks, including strengthening enforcement of existing laws and creating common-sense efficiency standards for cryptocurrency mining,” reads the White House factsheet.

In addition to focusing on privately created or issued digital currencies, the nine reports called on the U.S. Federal Reserve to “continue the ongoing CBDC,” according to the White House. I encourage you,” he said. [central bank digital currency] Research, experiment, evaluate. They also call for “the creation of a Treasury-led interagency working group to support the efforts of the Federal Reserve Board.”

Perceived lack of clarity

Meanwhile, in her response to the White House’s release of the factsheet, Sheila Warren, CEO of the Crypto Council for Innovation, lamented that some of the recommendations lack clarity and understanding of the technology. she said:

This is surprising given the clear direction from the EO and the efforts of MPs to move things forward. Regulation by enforcement is not regulation clarity. If we enforce regulation, it also gives other countries a runway to understand how the technology works to their advantage.This is against the interests of the United States. maybe.

In support of her claims, Warren referred to a September 15th U.S. Senate committee hearing convened to consider the Digital Goods Consumer Protection Act. The CEO said leaders at the hearing “seemed worried about other countries overtaking the United States.”

Warren concluded her remarks by saying she stands ready to help US lawmakers understand the digital asset industry, which she called a “complex and nuanced space.”

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Terrence Jimwala

Terence Zimwara is a Zimbabwean award-winning journalist, author and author. He has written extensively on the economic problems of several African countries and how digital currencies can provide an escape route for Africans.