The Biden authorities have just issued a framework for the development of digital assets, after receiving recommendations requested in the March 9 executive order.
On March 9, as per recent reports, President Biden from the White House issued a statement, that he has got nine reports, after asking for professional and public input in the Executive Order (EO) on Ensuring Responsible Development of Digital Assets. “Together, they articulate a clear framework for responsible digital asset development and pave the way for further action at home and abroad,” in the words of the President.
Keeping the reports in mind, the structure will be based on imposing bigger innovations, client security, and financial integration. For this, federal firms have been asked to invest in private sector research and development, while complying with the implementation of present regulations.
The Federal Reserve has also been inspired to carry on with its current research, experimentation, and evaluation of a central bank digital currency (CBDC), with help from a recently initiated interagency working portal, headed by the Treasury section.
While agreeing with the advantages of crypto assets, the White House declaration showed that securing clients, traders, and investments is a primary concern. Market regulators such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), were ordered to, without fail, run after interrogations.
In the meantime, the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) were asked: “to redouble their efforts to monitor consumer complaints.”
These federal bodies were also made to associate in connecting with the potential threat-dealing clients, which would require agencies to share info about consumers’ complaints about crypto assets.
For the sake of helping clients in understanding the threats involved with crypto assets, the framework supports the Financial Literacy Education Commission (FLEC) to carry out consumer-awareness programs.
The reports also urged firms to initiate guidance on the crypto asset universe, just like the one initiated by the SEC in March this year.
As per a recent report by Reuters, the guidance has resulted in making it technically impossible for banks to promote crypto facilities. With the need to dutifully respond to the demand of their consumers, the crypto-asset projects of several banks are now at risk.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.