The White House announced a regulatory framework for interacting with bitcoin and cryptocurrencies in the U.S. following an executive order (EO) by “whole government” from President Joe Biden earlier this year, according to a press release. Official press release.
The “Ensure the responsible development of digital assets” The EO calls on government agencies to conduct various forms of research related to privacy and consumer protection, energy use, and the benefits and risks of banking digital currencies. central bank (CBDC).
According to research provided, the White House intends to empower the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to “actively pursue investigations” in the space. digital assets.
Additionally, the Biden administration will push the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) to “double down on monitoring efforts” for the ecosystem as it relates to “the unfair, deceptive or abusive behavior”.
However, it remains unclear what allows it to be determined whether these agencies have begun to monitor the aforementioned dangerous behavior.
Moving on, the framework also calls for agencies to start accepting “instant payment systems,” such as FedNow, and to consider regulating non-bank payment service providers.
Furthermore, the National Science Foundation (NSF) will study “the fields of engineering and social engineering and behavioral economics” to understand digital asset ecosystems.
According to a recent report from the White House Office of Science and Technology Policy (OSTP), the Department of Energy (DoE) and the Environmental Protection Agency (EPA) are being tasked with “monitoring the environmental impacts of digital assets; develop performance standards where appropriate; and provide local governments with the tools, resources and expertise to reduce environmental harm. “
Additionally, the Bank Secrecy Act will be amended to apply to digital assets, resulting in larger fines for unlicensed money transfers and stricter enforcement. for digital asset service providers.
In addition, the US Department of Treasury will complete a risk assessment as it relates to decentralized finance (De-Fi).
Finally, the Biden administration developed a “Policy for the U.S. CBDC System,” which details the government’s priorities as it relates to the issuance of digital dollars. However, the statement said that “further research is needed”.
Agencies selected to lead the ongoing working group to research and possibly develop CBDCs include the Federal Reserve, the National Economic Council, the National Security Council, and the Office of Science Policy. and Technology and the Treasury Department.