The White House releases crypto regulations for the first time. Here are the details – Economic Times | Jewelry Dukan

US President Joe Biden signed the Executive Order for Ensuring Responsible Development of Digital Assets in March, directing the US government to research and analyze cryptocurrencies.

Six months after signing the executive order, the first publication on the responsible development of digital assets has appeared. This also includes suggestions from various ministries.

No new laws have been enacted, but the government has emphasized how cryptocurrency will work within the country. Parts of the regulations cover how consumers, investors and businesses are protected and how they are granted access to safe and affordable financial services. Cryptocurrency features are designed to promote financial stability, provide responsible innovation to establish current financial leadership capable of global competition, help fight illicit finance, and explore the possibility of a central bank digital currency (CBDC).

The laws have allowed regulators to investigate and exchange consumer complaints and enforce the law accordingly. The Securities and Exchange Commission and the Commodity Futures Trading Commission have been mandated by the Government to ensure these representations.

The US Treasury would analyze and share data with various financial agencies to stop cyber threats. The Treasury Department was also given the power to coordinate and work with regulators to help crypto companies guide them.

The US would work with its allies through the Financial Stability Board (FSB) and the Organization for Economic Co-operation and Development (OECD), both international bodies.

The assessment of the dangers of illicit funding through decentralized funding will be completed by February 2023. The non-fungible tokens (NFTs) will also be evaluated by July 2023.

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In relation to the Bank Secrecy Act, rules against notices and laws against unlicensed money transfers apply to providers of digital asset services such as NFT platforms and digital asset exchanges. Biden has to make a decision and then ask Congress for his opinion.

The factsheet states that there are ways to ensure that blockchain technology helps reduce carbon footprint and increase environmental justice. The paper added that the president will consider seeking arbitration from Congress to amend banking secrecy laws, anti-tipping laws and unauthorized money transfer laws related to digital asset service companies, exchanges and NFT platforms.

The White House Science and Technology Office also pointed out that crypto miners need to reduce greenhouse gas emissions and Congress may seek to limit high energy intensity consensus mechanisms.

The report stated that a central bank digital currency (CBDC) is planned and pointed to the numerous advantages for technology, economy, security and individual freedom.

frequently asked Questions

When did Bitcoin start working?
In 2008 it was invented and in 2009 it started to be used as open source software.

How does bitcoin work?
Bitcoin uses the SHA-256 hashing algorithm to encrypt the data stored in the blocks of the blockchain.

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