Tag: Executive Order

US Treasury Invites Public Opinions on Digital Assets Framework

by Blockchain News

The US Department of the Treasury invited public opinions on Tuesday on the potential risks and benefits of cryptocurrencies based on President Joe Biden’s executive order in March.

The Treasury stated that it is asking for input from the public that will help the administration in reporting to President Jow Biden on the possible impacts of digital assets on the payment infrastructures and financial markets.

Nellie Liang, Under Secretary of the Treasury for Domestic Finance, commented about the development: “For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams. The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

The request for public comment was launched on the Federal Register last Friday, July 8, but the Treasury formally announced it on Tuesday, July 12.

The Treasury expects the public to submit their comments by August 8th. The comments are just what people think or view could be the impact of mass adoption of cryptocurrencies, both for retail and institutional investors, and the potential effect of introducing new digital asset products and services. The agency also asked US citizens to weigh their thoughts on potential risks, such as losing private keys, and the authenticity of digital assets, including NFTs, among others.

The Treasury also noted concern that digital assets can pose risks to the underserved and vulnerable communities if exposed to such financial products with proper awareness: “The rise in use of digital assets, and differences across communities, may also present a disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services experienced by more vulnerable populations.”

As reported by Blockchain.News, in March, U.S. President Joe Biden signed an executive order calling the federal government to examine the benefits and risks of cryptocurrencies.

Biden’s executive order directed the Treasury Department to take the lead among other government agencies in developing regulations and oversight aimed at addressing both systemic and consumer risks around digital assets.

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Biden Receives Crypto Regulation Framework from Treasury

by Blockchain News

The United States Treasury Department has delivered a crypto framework to President Joe Biden as instructed in the Executive Order (EO) issued back in March. 

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The Treasury Department said the framework sent to the President was created in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development (USAID), and the heads of other relevant agencies.

According to the Treasury, the framework calls on the United States’ core allies to collaborate on creating international standards for regulating crypto assets. 

Harmonizing Crypto Regulations Across Borders

The Treasury highlights the need to harmonize approaches that can help to nip in the board regulations in combating crimes emanating from the crypto ecosystem which often spills to foreign jurisdictions.

“Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial stability and the protection of consumers, investors, businesses, and markets,” the framework reads, adding, “Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenge the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering.”

Also, the Treasury wants the US to take the charge in leading talks with respect to the development of Central Bank Digital Currencies (CBDCs) frameworks. 

“Such international work should continue to address the full spectrum of issues and challenges raised by digital assets, including financial stability; consumer and investor protection, and business risks; and money laundering, terrorist financing, proliferation financing, sanctions evasion, and other illicit activities,” the Treasury noted.

While the United States is now doing all it can to focus on the nascent crypto industry, the European Union is already ahead. The EU agreed on its own comprehensive framework for Markets in Crypto Assets (MiCA) in the past week, with full implementation barely a few years away.

It is not immediately clear how the US and EU will harmonize strategies moving forward but on CBDCs, more work is still ahead and the collaboration may be more meaningful this way.

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How Crypto Market Reacted After Biden’s Executive Order on Digital Currencies

by Blockchain News

Following the report that US President Joe Biden will sign an Executive Order (EO) on cryptocurrencies this week, the EO has finally been signed with many reasons for investors to go all bullish.

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For one, the EO did not contain an outright ban as President Biden only mandated Federal Agencies to coordinate their approach with respect to handling cryptocurrencies.

As gleaned from the mainstream reports, one part of the order will direct the Treasury Department to create a report on the “future of money,” including how the current financial system might not meet consumer needs.

With the details of the EO keeping crypto investors in the clear for now, digital currencies have had the impetus to leap, with many printing a very bullish trend.

Market Reaction to the Executive Order

The global cryptocurrency market capitalization surged 6.11% and was pegged at $1.84 trillion at the time of writing. 

Bitcoin (BTC) printed an 8.45% growth to $41,886.98, growing from a low of $37,260.20 recorded in the past week. Ethereum surged 4.82% to $2,696.56 as the world’s largest blockchain network seeks to pare off the losses it has accrued since the turn of the week. 

Other altcoins also reacted positively to the news with Binance Coin (BNB) changing hands at $393.46, up 2.68% in the past 24 hours. Solana (SOL), Cardano (ADA), and Terra (LUNA) also printed a growth rate of 5.59%, 5.13%, and 17.2% at the time of writing.

Despite the fact that volatility is rocking the market as some investors are taking profits off the market, the majority of long-term HODLers are poised to hang on to their bags as the position of the United States government may likely favour a reasonable innovation as Treasury Secretary, Janet Yellen predicted.

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US President Joe Biden to Sign Executive Order on Crypto this Week

by Blockchain News

According to several people familiar with the White House’s deliberations, U.S. President Joe Biden is expected to issue an executive order on cryptocurrency this week. The move will mark the first step toward regulating how crypto assets are traded.

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The action by the White House comes as, in recent weeks, U.S. administration officials have raised concerns about Russia’s use of crypto assets to evade the impact of sanctions in response to its invasion of Ukraine. The sanctions have closed the country’s stock market and sent the ruble to historic lows.

Two people familiar with the process have disclosed that the executive order on cryptocurrency is expected to be issued this week. The order will describe what government agencies, including the Treasury Department, should do to create policies and regulations on digital currencies. It is also expected to develop policies to enable the U.S. government to work with foreign powers to regulate crypto and its trade across international borders.

Furthermore, the order will ask other agencies, including the Financial Stability Oversight Council the Treasury Department, among others, to analyze the use of cryptocurrency in financial crimes and its impact on the environment.

Besides that, the order will also direct agencies to build on efforts by the Federal Reserve to study the possibility of launching a new central bank digital currency.

In January, the Federal Reserve issued a report that discussed the risks and benefits of U.S.-backed digital currency.

U.S. officials have remained concerned about Russia’s ability to use cryptocurrency to evade sanctions. Crypto is one of several spaces that the Biden administration is looking to beef up as it attempts to ensure that sanctions on Russia have maximum impact.

The order appears neutral on the issues of cryptocurrencies as a whole. It hints that the U.S. will not go in the direction of banning the use of technology. In the recent past, as reported by Blockchain.News. Several countries, including China, issued a complete ban on cryptocurrency within their jurisdictions.

The implication in the order is that cryptocurrency will remain a part of the U.S.U.S.nomy for years to come. The order signals that regulations are underway. It means that significant changes are on the way to how the U.S.U.S.overnment handles a technology that has until now seen its development majorly driven by private businesses.

 

 

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Biden Administration Preparing To Release Government-Wide Strategy for Dealing With Digital Assets: Report

by Dailyhodl

The Biden administration is reportedly expected to take sweeping action on the digital asset space in the weeks ahead.

According to a new Bloomberg report, a number of unnamed insiders reveal that senior administration officials plan to unveil an executive order that will provide details on the regulatory, economic and national security risks posed by digital assets.

The executive order will also task various government agencies to submit reports in the latter half of the year.

The Financial Stability Oversight Council is one group expected to offer insights in the coming months, with the possibility of the State Department and the Commerce Department being consulted as well.

The White House is also likely to discuss the possibility of supporting a central bank digital currency (CBDC), which would be a digital asset backed by the US government.

Just last week, the Federal Reserve released a long-anticipated report on the feasibility of issuing a CBDC in the United States.

The Fed report says,

“A CBDC could potentially serve as a new foundation for the payment system and a bridge between different payment services, both legacy and new.

It could also maintain the centrality of safe and trusted central bank money in a rapidly digitizing economy.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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