Members of the crypto space and advocacy groups of the United States President Joe Biden’s administration released a regulatory framework on digital assets, with many of the White House reacting to the potential negative aspects of crypto.
In an announcement Friday, the White House said federal agencies and departments have submitted nine reports since March as required by Biden’s executive order. Information included in the fact sheet includes the U.S. central bank’s digital currency policy objectives, ways to reduce the potential impact of crypto energy use on the climate, and enforcement actions for regulatory purposes, risk mitigation rules, and consumer protection.
The Biden administration said the Treasury Department will report on a “decentralized financial illegitimate financial risk assessment” in February 2023, adding that federal agencies will “continue to expose and disrupt illegal actors and the misuse of digital assets.” In addition, the White House said it supports the payment systems the Federal Reserve plans to launch in 2023 with FedNow.
Crypto analyst Dylan LeClair and MicroStrategy founder Michael Saylor both They criticized. The administration’s position on Twitter, Making a claim He was using environmental issues as an excuse to extend his control over digital assets:
“If you don’t like how someone uses energy, pay them more. […] No amount of mass clamoring about climate change will stop the next ban from mining.
“Today’s reports and summaries from the Biden administration’s executive order on digital assets are a missed opportunity to strengthen US crypto leadership,” said Christine Smith, executive director of the US-based Blockchain Association. “While intended to be part of a broader government and stakeholder effort to better regulate crypto assets, these reports focus on threats — not opportunities — and leave out important recommendations on how the United States can promote its growing crypto industry.
The White House proposal is a disgrace.
– A clear attack on job certification, showing that they set environmental standards for mining.
– FedNow push on crypto
– Treating everything as a fraud or threat
– Advice on volatility and consumer risk
— Wolf of All Streets (@scottmelker) September 16, 2022
Speaking to Cointelegraph, Sheila Warren of the Creative Crypto Council said the policy recommendations seem to be based on an “outdated and unbalanced understanding” of crypto, which could be left to other lawmakers or the next administration to decide.
“In yesterday’s hearing [on regulating crypto], many seem worried about other countries eating the US. Enforcement regulation is not regulatory transparency. If we were to regulate it by force, it would give other countries a clear runway to figure out how the technology could work to their advantage, which could be counterproductive to the US.
Related: A crypto policy advocacy group warns that there is a ‘disgusting’ provision in the new US bill
Reports of establishing a comprehensive regulatory framework for cryptocurrencies in the United States were some of the first since President Biden announced the order in March, but the work is far from over. The Treasury Department and the Fed continue to examine the implications of the digital dollar rollout. The White House said the Financial Stability Oversight Council will publish a report in October on the financial-stability risks of digital assets and related regulatory gaps.