The Biden White House Release Its First-ever Framework For Regulating Crypto in US

The Biden White House Release Its First-ever Framework For Regulating Crypto in US.

The Biden White House, has released its initial framework for regulating digital assets in the U.S. on September 16, 2022.

Aiming To Be a Global Leader in Managing Digital Assets

The new guidelines are intended to position the country as a global leader in managing digital assets, said Brian Deese, director of the National Economic Council.

A framework was issued in response to an executive order issued by President Biden in March that asked agencies to assess cryptocurrencies’ risks and benefits and release official reports.

A half dozen priorities listed in the executive order have been addressed by government agencies by developing their own frameworks and policy recommendations over the past six months. 

The issues are the U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation are among these priorities.

As a result of these recommendations, a “whole-of-government approach” to regulating the industry is being established for the first time.

Addressing Cryptocurrency Related Issues

Some of the White House’s new framework for crypto regulation focuses on removing illegal activity in the industry and advancing borderless transactions in the financial services industry.

“The President will evaluate whether to call upon Congress to amend the Bank Secrecy Act, anti-tip-off statutes, and laws against unlicensed money transmitting to apply explicitly to digital asset service providers — including digital asset exchanges and nonfungible token (NFT) platforms,” cited to a White House fact sheet.

Also being considered by the president is urging Congress to increase penalties for unlicensed money transfers, as well as amending certain federal statutes so that the Department of Justice may prosecute digital asset crimes in any jurisdiction where a victim of those crimes is located.

Digital asset fraud is rampant. Research from the Federal Trade Commission indicates that over $1 billion has been lost to crypto fraud since the start of 2021.

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Jamilatul Mahmudah

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