The White House’s First Crypto Framework and Missed Opportunities – Law Decoded, September 12-19

At the end of last week, federal agencies presented the results of six months of work on the main directions of control of digital assets in the United States. The first-ever crypto framework published on the White House website may not contain many surprises or precise details, but as part of President Joe Biden’s executive order, it will no doubt influence future policy decisions.

Perhaps the most important part of the framework is dedicated to Central Bank Digital Currencies (CBDCs). The administration stated that it has developed policy objectives for the US CBCC system, but that further research is needed into the possible technological basis of the system. Still, the goal seems daunting, as the Treasury leads an interdisciplinary working group involving the Federal Reserve, the National Economic Council, the National Security Council and the Office of Science and Technology Policy.

The industry did not take the document very well, as policymakers’ focus on security and enforcement was very visible. Christine Smith, executive director of the US-based Blockchain Association, called it a “missed opportunity to strengthen US crypto leadership,” pointing to a strong focus on risks rather than risks and a lack of concrete advice on promoting the crypto industry. Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said the policy recommendations appear to be based on an “outdated and unbalanced understanding” of crypto, which could leave the details to be decided by other lawmakers or the next administration.

Integration and control effects

Ethereum’s upgrade to proof-of-stake (PoS) may have put the cryptocurrency in the crosshairs of the Securities and Exchange Commission. SEC Chairman Gary Gensler reportedly said that cryptocurrencies and intermediaries that allow intermediaries to “share” their crypto may declare it as a security in the Hawaii test. Gensler went on to say that intermediaries that provide stock services to their clients “look very similar to a lender – with some changes to the label.” While the SEC has previously stated that they do not consider Ether (ETH) a security, both the Commodity Futures Trading Commission (CFTC) and the SEC agree that it functions more like a commodity.

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18 possible design forms for the American CBCC

The Office of Science and Technology Policy has released a report analyzing design options for 18 central bank digital currency systems that could be implemented in the U.S. The technical analysis of the 18 CBCC design options is divided into six broad categories: participants, governance, security, transactions. , data and adjustments. To help policymakers decide on an appropriate system for the US CBCC, the OSTP report highlighted the implications of including third parties in the category of “participants” in two design choices—the transportation layer and each other. For management, the report weighed a variety of factors related to permissions, access levels, identity privacy and optimization.

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Thailand set to ban crypto lending

Thailand’s Securities and Exchange Commission (SEC) is gearing up to take radical measures in summer 2022 after the crashes of crypto lending platforms. Thailand’s SEC plans to ban them from providing or supporting digital asset escrow services. The proposed ban includes several main points. It prevents operators from taking deposits of digital assets by promising to pay depositors a return – even if the revenue comes from a promotional budget rather than from rising asset values. Advertising of lending and deposit services will also be banned.

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