The first crypto regulatory framework released by the White House, See more about it!

United States President Joe Biden issued an executive order on crypto, called “Ensuring Responsible Development of Digital Assets.

After that, the feds presented a joint prospectus on six key areas of regulation in the US.

The joint fact sheet prepared by the federal agencies mainly aggregates the content of nine separate reports provided to the President to ensure a “articulate and clear framework for responsible development of digital assets and paves the way for further action at home and abroad.” .”

The decision to pass an order could indicate the nature of cryptocurrencies, which means that high volatility is associated with digital assets.

Volatility has been one of the major concerns related to the cryptocurrency industry, and this has created problems across the industry, as seen in new reports.

This has led the United States to shape and structure regulations for digital assets.

What is Crypto Framework?

The framework outlines the various methods by which a financial services sector could be transformed to more easily conduct borderless transactions.

This framework also aims to eliminate fraud in the industry.

In a statement from the Biden administration, he said:

Digital assets pose significant risks to consumers, investors and businesses. The prices of these assets can be extremely volatile: the current global cryptocurrency market capitalization is about a third of its peak in November 2021.

This newsletter was published today, September 16, 2022. It includes seven sections, to be more specific.

(1) Protection of consumers, investors and businesses. (2) Promote access to safe, affordable financial services. (3) Promotion of financial stability. (4) Promoting Responsible Innovation. (5) Enhancing our global economic leadership and competitiveness. (6) Combating Illicit Financing. (7) Exploring US Central Bank Digital Currency (CBDC).

The White House statement mentioned how various government agencies could come together and ensure that the digital currency space grows without many obstacles.

To protect customers and investors

The crypto framework mentions the various methods by which a financial services sector could be transformed to transact without borders more easily.

The risks cited by the White House were mainly related to price volatility and crypto scams.

The White House statement encouraged the Securities and Exchange Commission and the Commodity Futures Trading Commission to “aggressively pursue investigations and enforcement actions against illegal practices in the digital asset space.”

Currently, neither the SEC nor the CFTC has oversight over the crypto industry today.

In particular, the SEC is scrutinizing the crypto market after the agency’s chairman, Gary Gensler, said again this week that most digital assets should be classified as securities.

That report also called on the Consumer Financial Protection Bureau and the Federal Trade Commission to rebuke wrongful practices in the industry.

It has also been suggested that government agencies work together and address the relevant consumer risks to publish clear guidelines and rules for the crypto space.

Crypto
Bitcoin priced at $19,700 on the one-day chart | Source: BTCUSD on TradingView
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