Following President Joe Biden’s March 9 executive order, the white house has released a comprehensive framework for the responsible development of digital assets, especially crypto. Over the last six months, the whole-of-government approach has been focused on mitigating risks and harnessing the benefits of digital assets.
Several agencies have collaborated to develop frameworks and policies with six key priorities: financial stability, managing illicit finance, US leadership in global finance, economic competitiveness, financial inclusions, and responsible innovation.
Nine comprehensive reports, consistent with the orders’ deadlines, have been submitted to the President. These reports suggest agencies promote innovation by indulging in private-sector research and development. The reports also call for the Central Bank Digital Currency (CBDC) risk mitigation methods by experimentation and evaluating a “Treasury-led interagency working group.”
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Digital assets come with a significant risk for consumers, businesses, and investors due to price volatility. The Biden-Harris administration and regulators have been working to ensure fair play in the financial and digital assets market. The administration has issued guidance and pursued the fraudulent agents to protect consumers.
Some significant steps that have been taken:
- Securities and Exchange (SEC) and Commodity Futures Trading Commission (CFTC) to enforce actions against unlawful practices.
- Consumer Financial Protection Bureau (CFRB) and Federal Trade Commission (FTC) to monitor consumer grievances.
- Financial Literacy Education Commission (FLEC) to lead public awareness to help consumers understand the risks of digital assets.
- Office of Science and Technology Policy (OSTP) and NSF will develop a Digital Assets Research and Development Agenda to initiate advancements.
- NSF will cover social sciences and the training of diverse groups of stakeholders.
- The Department of Commerce will establish a forum to convene agencies, academics, and civil society to exchange debates on standards, rules, technical requirements, and research support.
You can check the official press release to know more about the framework.