US Digital Asset regulation: Select the last executive order issued by Biden administration Management’s first decision on the regulation digital asset industry, which includes six political objectives. also called Federal agencies To produce reports on how these objectives interact with the industry.
US Digital Asset regulation- overview
I gave government agencies and the federation great interest in this industry. The current global market capitalization for cryptocurrencies is about 2.04 trillion dollars. and prepare Cryptocurrencies And the Irreplaceable icons I am a boy (NFTs) is one of the most widely used types of digital assets.
Digital Assets single regulatory system
even it’s happen “The buying, selling, trading, holding, lending, guaranteeing, and speculation of digital assets by individual and institutional investors, without fitting neatly into a single regulatory system.”
- At the federal level, there have been many initiatives related to regulating digital assets, depending on the specific nature of the digital asset.
- The federal government has so far focused primarily on limiting the use of digital assets in terrorist financing and the illicit financing.
executive order for digital assets
at 9 March, the President issued Biden Executive Order on Ensuring Responsible Development for digital assets which determines the first formal response Biden management to create these assets.
as it highlights Executive order Highlighting the lack of uniform control and applicable standards for these virtual assets, indicating that this absence may lead to insufficient protection of sensitive financial data, control measures, and other arrangements related to clients’ assets and funds, or disclosure of risks associated with investments in the digital field.
Additionally, the order sets out six policy objectives in relation to digital assets:
- 1- Protection of customers, investors and businesses.
- 2- Financial stability and systemic risk mitigation.
- 3- Reducing illicit financing and national security risks.
- 4. Ensure continued leadership in the global financial system and the economic competitiveness of the United States.
- 5- Financial inclusiveness.
- 6. Development and responsible use of digital assets.
Under the stated objectives, directs Executive order Federal government departments and bodies, to cooperate with each other, to prepare various regulatory and legislative reports and recommendations for the administration.
The reports are intended to provide background information regarding the digital asset industry’s interaction with US policy objectives. More specifically in relation to the issuance of the digital currency of the Central Bank CBDC. The following is a summary of the reports that will be submitted:
Central bank digital currency
Will present US Treasury Secretary a report on the future of money and payment systems. Specifically, the Treasury will present a report on the conditions for widespread adoption of this technology, the extent to which technological innovation has affected this development, and the implications for the financial market and payment systems in the United States.
In addition, the Director of the Office of Science and Technology Policy and the Chief Technology Officer of the United States will present a report detailing the technical assessment of the technological infrastructure, capabilities, and expertise that will be necessary in the relevant agencies to facilitate and support the introduction of the cryptocurrency system. central bank CBDC in the United States.
Financial stability, mitigating systemic risks, and promoting market integration
The Treasury Department will present a report outlining the financial stability risks and regulatory gaps posed by different types of digital assets. It will also make recommendations to address these risks.
Specifically, you will consult Treasury With Ministry of LaborAnd theFederal Trade Commission and the Securities and Exchange Commission and the a committee Commodity futures trading and the Financial Consumer Protection Office, and federal banking agencies To assess the implications of the development and adoption of digital assets and financial changes.
Illicit financial risks and national security risks
The Treasury Department will develop a coordinated action plan to mitigate the risks of illicit financing related to digital assets, and the national security risks that are addressed. Where it will present to Congress a national strategy. ”anti-terror” And the “illicit financing.
In addition, the Department of the Treasury is tasked with developing a framework for international engagement between agencies with international counterparts, such as the Financial Action Task Force and the Financial Stability Board to adapt, update, and promote the adoption of global principles and standards for how digital assets are used in transactions, and promote the development of digital assets and cryptocurrency technologies. Central bank compliant with the legal values and requirements of the United States.
In turn, the Director of the Office of Science and Technology Policy will present a report on the relationship between technology and technology.Distributed Ledger” And the”Economic and energy transitions”including the potential for these technologies to impede or enhance efforts to address climate change, and the impacts of these technologies on the environment.
The policy objectives described in the Executive Order address the many ways digital assets interact with other industries and the various legal concerns that arise. It also includes transactions, corporate, finance, intellectual property, and litigation issues, with a focus on the effects of digital central bank currencies.
It is still too early to predict the exact effects of the system. Despite this, the objectives set are expansive, and it is likely that they will result in major changes at the level of “Cryptocurrency industry“, And the”Irreplaceable tokens“Result of Research Biden administration.