The Biden administration stated on Friday that U.S. government agencies must step up enforcement in the digital asset sector and pinpoint regulatory gaps in cryptocurrencies. It also noted that cryptocurrencies’ expanding role in global finance while also pointing out their potential for abuse and harm, Reuters reports.
Even while the White House refrained from endorsing a digital dollar, the Treasury Department will head a committee of government organizations that will study a central bank digital currency.
This year, U.S. President Joe Biden signed an executive order “on Ensuring Responsible Development of Digital Assets,” which was followed by the collective government action, which was announced in a number of published papers.
The papers recommended authorities provide guidelines and standards for hazards in the digital asset ecosystem, including the possibility for cryptocurrencies to be used in money laundering or fraud, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
According to the White House, Biden would also think about requesting Congress to alter the Bank Secrecy Act (BSA) so that it covers platforms for non-fungible tokens, or NFTs, as well as cryptocurrency exchanges and other service providers of digital assets. Lenders must notify the Treasury of any questionable transactions under the BSA.
In order to establish a federal framework to regulate non-bank payment services, Biden will also take into account agency proposals.
As part of its efforts “to fight the rising threat presented by the criminal use of digital assets,” the Justice Department recently announced that it was appointing a Digital Asset Coordinator to supervise 150 federal prosecutors in the investigation and prosecution of digital asset offenses.
In addition to pointing out the dangers, U.S. Commerce Secretary Gina Raimondo said that properly regulated digital assets may boost the competitiveness of global payment networks and benefit disadvantaged communities.
Without adequate regulation, cryptocurrencies might threaten the nation’s security and financial stability, according to National Economic Council head Brian Deese.
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