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White House Releases ‘First-Ever’ Framework For Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear

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White House Releases ‘First-Ever’ Framework For Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear

The White House has now released what it called its “first-ever” comprehensive framework for the responsible development of digital assets just over six months after U.S. President Joe Biden signed an executive order on the same matter. However, one crypto industry leader has lamented the lack of clarity and understanding of the technology in the White House’s fact sheet.

Reinforcing United States Leadership in the Global Financial System

Just over six months after U.S President Joe Biden signed an Executive Order (EO) outlining the government’s multi-pronged approach toward digital assets, the White House, on September 16, unveiled what it termed the “first-ever comprehensive framework for digital asset development.”

Explaining the Biden administration’s decision to release the framework, the White House said while digital currencies may have the potential to “reinforce the U.S. leadership in the global financial system,” they still pose risks to investors and consumers as evidenced by the crypto market’s crash in May.

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Therefore, to protect millions of people, including United States residents that have acquired digital assets, U.S government agencies have developed frameworks that advance six key priorities identified in the EO. The six key priorities identified in the March 9 EO are consumer and investor protection, financial stability, countering illicit finance, the United States’ leadership in the global financial system, financial inclusion, and responsible innovation.

According to the White House fact sheet, nine reports articulating a “clear framework for responsible digital asset development and [paving the] way for further action at home and abroad” have since been submitted to President Biden. In addition to advocating for orderly digital asset development, the nine reports are also said to identify roles government agencies must play to help American companies.

“The reports call on agencies to promote innovation by kickstarting private-sector research and development and helping cutting-edge U.S. firms find footholds in global markets. At the same time, they call for measures to mitigate the downside risks, like increased enforcement of existing laws and the creation of commonsense efficiency standards for cryptocurrency mining,” the White House’s fact sheet reads.

Besides focusing on privately created or issued digital currencies, the nine reports, according to the White House, also encourage the U.S. Federal Reserve “to continue its ongoing CBDC [central bank digital currency] research, experimentation and evaluation.” They also call for the “creation of a Treasury-led interagency working group to support the Federal Reserve’s efforts.”

Perceived Lack of Clarity

Meanwhile, in her reaction to the White House’s publishing of the fact sheet, Sheila Warren, the CEO of the Crypto Council for Innovation, lamented the lack of clarity and understanding of the technology in some of the recommendations made. She noted:

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This is surprising given the clear instructions from the EO and work from Members of Congress to move things forward. Regulation by enforcement is not regulatory clarity. If we regulate by enforcement, it also gives other countries a runway to figure out how the tech works for their interests, which may be contrary to those of the U.S.

To back her assertions, Warren referred to a September 15 U.S. Senate Committee hearing convened to review the Digital Commodities Consumer Protection Act. According to the CEO, leaders at the hearing “seemed worried about other countries overtaking the U.S.”

In concluding her remarks, Warren said her organization stands ready to help U.S. lawmakers understand the digital asset industry which she called “a complex and nuanced space.”

Tags in this story

biden executive order, central bank digital currency, Crypto Council for Innovation, cryptocurrency mining, Digital Assets, Digital Commodities Consumer Protection Act, financial inclusion, global financial system, Sheila Warren, Terra LUNA and UST fallout, U.S. Federal Reserve, U.S. President Joe Biden, White house

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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US Treasury Official: We Don’t See That Crypto Could Be Used In Large-Scale Way To Evade Sanctions

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US Treasury Official: We Don’t See That Crypto Could Be Used In Large-Scale Way To Evade Sanctions

The U.S. Department of the Treasury does not see that cryptocurrency could be used in a large-scale way to evade sanctions. “Its share as a medium for illicit finance is not anywhere as large as just using cash,” a senior Treasury official noted.

Treasury Department’s View on Crypto Use to Evade Sanctions

Nellie Liang, Treasury undersecretary for domestic finance, talked about the potential use of cryptocurrency as a tool to evade sanctions for Russia Friday in an interview with Reuters.

The senior Treasury official explained that the crypto market is currently not large enough to run an economy on, and the crypto ecosystem is too underdeveloped to effectively facilitate sanctions evasion on a large scale.

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“The transaction size we’ve seen is fairly small. Of course, we recognize we may not see everything, but there is a fair amount of oversight,” Liang was quoted as saying. She elaborated:

At this point, we just don’t see that it could be used in a large-scale way to evade sanctions.

The official revealed that the Treasury has been studying the issue for years. In addition, the Group of Seven (G7) advanced economies and other countries have raised concerns about the use of cryptocurrency for illicit finance.

She added:

While it’s growing because the use of crypto is growing, its share as a medium for illicit finance is not anywhere as large as just using cash.

Despite many sources confirming that cryptocurrency is currently not an effective tool for sanctions evasion on a large scale, Senator Elizabeth Warren remains deeply concerned.

She introduced a bill Thursday “to ensure that Vladimir Putin and Russian elites don’t use digital assets to undermine the international community’s economic sanctions against Russia following its invasion of Ukraine.” However, an expert said that her bill is “unnecessary, overbroad, and unconstitutional,” as Bitcoin.com News previously reported.

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Meanwhile, President Joe Biden signed an executive order on crypto regulation last week. The order directs the secretary of the treasury to work with all relevant agencies to produce a report on the future of money and payment systems. Liang will lead the Treasury’s effort to implement the executive order.

What do you think about the Treasury official’s comments? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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US Senator Booker: Cryptocurrency Can Bring Growth To American Economy If Properly Regulated

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US Senator Booker: Cryptocurrency Can Bring Growth To American Economy If Properly Regulated

U.S. Senator Cory Booker sees cryptocurrency as “an exciting innovation with the potential to bring growth to the American economy if properly nurtured and regulated.” The senator from New Jersey is encouraged by President Joe Biden’s executive order on crypto regulation.

US Senator Sees Crypto Benefiting American Economy

U.S. Senator Cory Booker talked about the potential benefits of cryptocurrency to the American economy Thursday. His comments followed President Joe Biden’s executive order on crypto regulation.

Booker became the first African American to represent New Jersey in the U.S. Senate in October 2013. Prior to becoming a U.S. senator, he served on the Newark City Council from 1998 to 2002 and as mayor of Newark from 2006 to 2013.

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“I’m heartened by the nuanced and optimistic tone of POTUS’ recent executive order on digital assets,” the senator tweeted, elaborating:

Cryptocurrency is an exciting innovation with the potential to bring growth to the American economy if properly nurtured and regulated.

“As the order notes, the U.S. has taken a position as a leader in this rapidly developing field, and we need to make sure we keep it,” Senator Booker continued.

“Many Americans, including significant numbers of Black and brown people, have participated in the purchase and exchange of digital assets,” he further tweeted, noting:

The administration’s willingness to step up to this challenge and focus on the transformative power of Web3 is encouraging.

Senator Booker proceeded to emphasize the importance of investor protection. “Their protection as consumers must be prioritized alongside the fostering of innovation to keep America competitive on the global stage,” he opined.

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Investor protection is one of the key priorities in President Biden’s crypto executive order (EO), which states:

We must take strong steps to reduce the risks that digital assets could pose to consumers, investors, and business protections.

Many people in the crypto industry welcome Biden’s crypto executive order. “The message I take from this EO is that the federal government sees cryptocurrency as a legitimate, serious, and important part of the economy and society,” an executive of a D.C.-based think tank commented.

Do you agree with Senator Booker? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Cornell Professor: Crypto Industry Could Benefit From Biden’s Executive Order, Regulations Provide Legitimacy

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Cornell Professor: Crypto Industry Could Benefit From Biden’s Executive Order, Regulations Provide Legitimacy

A Cornell University economics professor says that President Joe Biden’s executive order on the regulation of cryptocurrency could benefit the industry. “Ultimately what these sorts of regulations provide to the industry is legitimacy,” said the professor.

Cornell Professor on Crypto Industry Benefiting From Biden’s Executive Order

Eswar Prasad, professor of economics at Cornell University, shared his thoughts on U.S. President Joe Biden’s crypto executive order and what it means for the industry in an interview with CNBC, published Thursday.

Prasad is the Nandlal P. Tolani senior professor of trade policy and professor of economics at the Charles H. Dyson School of Applied Economics and Management at Cornell University. He previously served as chief of the financial studies division in the International Monetary Fund (IMF)’s research department and head of the IMF’s China division.

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The Cornell professor has repeatedly warned about the risks cryptocurrency poses to monetary and financial stability. In December last year, he said Bitcoin may not last much longer.

President Biden issued an executive order on the regulation of cryptocurrencies Wednesday. The professor explained that the executive order basically “tasks various U.S. agencies and institutions” to come up with a “comprehensive plan for the regulation of a broad set of digital assets, including decentralized cryptocurrencies such as bitcoin, but in addition, stablecoins. It also explores the prospect of launching a digital version of the U.S. dollar.

The professor added:

In all of these areas, I think regulation is certainly necessary because it is a bit of a Wild West right now. You have a lot of prospects for decentralization and the prospects of these new technologies potentially democratizing finance.

However, Prasad noted: “But, on the other hand, there is a risk that these technologies could be used for illicit financing. They could end up not providing the sort of investor protection that is necessary to make sure that retail investors understand the risks of what they’re getting into.”

Moreover, the professor detailed: “You have financial stability risk as well, including from stablecoins, which might seem like the safest of instruments but are beginning to essentially function like unregulated money market mutual funds.”

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Noting that “the idea behind the [executive] order is to start thinking about the functionality of these different assets and technologies and thereby regulate them,” the Cornell professor said:

Actually, it might end up benefiting the industry … Because ultimately what these sorts of regulations provide to the industry is legitimacy.

Prasad noted that when the specifics of the regulation come out, the crypto industry may not like some parts of it but overall he insisted that it should be positive for the industry.

Nonetheless, he concluded:

Overall, bringing some regulatory clarity certainly is going to help the industry and potentially could also help harness the benefits of these new technologies by mitigating the risks.

Many people in the crypto sector are encouraged by Biden’s crypto executive order. “This is an affirmation that crypto is here to stay,” a crypto company’s executive described.

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What do you think about the Cornell professor’s comments? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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