The White House has officially released a report detailing specific regulatory measures for cryptocurrencies. This report comes when the crypto community in America and beyond is clamouring for a specific regulatory framework for digital assets. The recent regulation cases have prompted these calls by enforcement from financial watchdogs.
The White House reports have put in some measures to regulate the crypto scene
The White House published a fact sheet on Friday addressing the nascent crypto industry on the global scene. The White House, it has released nine reports concerning crypto following president Joe Biden’s recent executive order. The reports aim to enforce better protection measures for individual consumers and businesses. In addition, they address national security, financial stability and environmental concerns crypto assets bring.
The report acknowledged the increasing rate of cryptocurrency adoption in the U.S. Additionally; the White House noted that this increase in adoption has also led to an increase in fund losses, citing the Terra crash and wave of insolvency that subsequently hit crypto entities. This underscores the urgency of a standard regulatory framework to protect consumers and foster innovation in the industry.
Regarding consumer protection, the reports give regulators such as the SEC and CFTC the backing to enforce measures against illicit acts. Additionally, the White House urged the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) to intensify efforts to address consumer complaints. Furthermore, The Financial Literacy Education Commission (FLEC) is tasked with educating the general public on the risks crypto assets pose.
The U.S. has developed objectives for a U.S. CBDC system
Regarding financial stability, the U.S. Treasury Department is urged to oversee the cyberspace and palliate identified vulnerabilities. The White House is also attempting to foster innovation in the crypto space. The reports task the Office of Science and Technology Policy (OSTP) with nurturing agendas to promote development in the space and mitigate environmental risks.
The White House reports also ask the Treasury and other regulators to assist entities with proper guidance and valuable tools. The Environment Department and other related agencies will also oversee the environmental impact of crypto mining and provide means to reduce risks.
Concerning illegal financing, the White House noted that the President could consider reviewing the Bank Secrecy Act in tandem with Congress. This review would allow the act to incorporate terms relating to digital assets. Additionally, the proper authorities will continue to check illegal activities in the industry.
The White House report concluded that a CBDC would immensely benefit the country. These benefits could include a more efficient payment system, seamless international transactions, and a foundation for more significant innovation. Consequently, “The Administration has developed Policy Objectives for a U.S. CBDC System,” the White House report noted.