The first framework of crypto regulation has been released by the US government which covers the topics like how financial services can be developed to make borderless transactions easier than before and how the number of crypto frauds can be stopped.
Around 6 months back Joe Biden (President of the USA) asked the government agencies to look for some approaches that can be used to regulate crypto and finally some results came out of that as the US treasury presented 3 brand new reports on 16 September. The executive orders given by Joe Biden in march had very specific requirements that needed to be fulfilled in any offer or report, and these were the protection of consumers and investors; encouragement of financial stability; blocking illegitimate finance; promotion of the United States’ leadership in the world financial system and economic competitiveness; financial inclusion; and responsible innovation
The crypto framework discusses many ways that the financial services industry should change to facilitate easier borderless transactions. The White House mostly mentioned price volatility and cryptocurrency fraud as hazards. Neither the CFTC nor the SEC currently has control over the cryptocurrency market.
Since the agency’s chairman, Gary Gensler, stated this week once more that the majority of digital assets ought to be treated as securities, the SEC in particular has been closely monitoring the cryptocurrency market. Additionally, this research has urged the Federal Trade Commission and the Consumer Financial Protection Bureau to oppose unethical business practices.
The administration claims that in order to make stablecoins “safer,” the Treasury will collaborate with other agencies to “identify, track, and analyze emerging strategic risks that relate to digital asset markets,” as well as “work with financial institutions to bolster their capacity to identify and minimize security flaws by sharing information and promoting a wide range of data sets and analytical tools.”
The issue is that no laws have yet been mandated yet and the new instructions use the power of already-existing regulators like the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The report offers general recommendations for an increase in risks but it does not offer ideas for specific regulations or legislation. The report just included the introduction of CBDC but no single decision have made for the issues. This was just a technical report to help people understand the concept of CBDC.
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