Crypto assets have been an amazing innovation for the world, however, when Satoshi Nakamoto presented Bitcoin, blockchain technology was an uncharted territory that the world of the Internet was waiting for. Ever since then, there have been new altcoin projects coming up so often, that it is now getting a little hard to keep up with!
Sooner the exponential growth of the crypto space happened and governments around the world saw the potential in the new asset class. Where countries like El Salvador declared Bitcoin as a legal tender, many are still understanding the technology further before stating regulations on the crypto assets. Earlier in March 2022, US President Joe Biden signed an Executive Order for Ensuring Responsible Development of Digital Assets in March, where he asked the US government to conduct thorough research and analyze the crypto assets.
Following the issuance of the Executive Order, the White House has come up with its first publication for the responsible development of digital assets. The publication also includes many suggestions from various other government departments.
According to the Economic Times news, there has not been any new laws framed within the publications but the government has underlined how the crypto assets within the country will be functioning. Some of the parts of the regulations also include how consumers, investors, and businesses will be protected along with how they will be provided access to safe and affordable financial services. Few of the most important functions of the crypto assets are dedicated to encouraging financial stability, in providing responsible innovation to establish the current financial leadership capable of global competition, helping fight illegal finance by negating the involvement of third parties in transactions and exploring the possibility of central bank digital currency often referred to as CBDC.
Some of the other regulations stated in the White House Publication, following the Executive Order are as follows:
- The US laws have permitted regulating bodies to assess and exchange consumer complaints and enforce the law accordingly. The Securities and Exchange Commission and Commodity Futures Trading Commission have been given the charge of securing these assurances by the government.
- The US Treasury will be analyzing and exchange data with various other financial bodies and work towards stopping cyber threats. The Treasury has also been given the power to coordinate and collaborate with regulatory authorities in order to help and guide the crypto companies.
- Using the services of the Financial Stability Board (FSB) and the Organization for Economic Cooperation and Development (OECD), both of which are international bodies, the US will be engaging with its allies.
- The US government is still conducting various assessments to study the dangers of illegal financing due to decentralized finance. The same will be completed by February 2023. According to the publication, the Non-fungible tokens (NFTs) will also be evaluated by July 2023.