The White House has issued its “first-Ever Comprehensive Framework for Responsible Development of Digital Assets.” The framework was released in a Friday report on its handle. As reported, the framework, released by the White House highlights various conclusions and recommendations on the regulations of crypto industry in the country.
Notably, the new framework by the White House comes a few months after it began to evaluate the emerging crypto space. Recall that the US President, Joe Biden, had in March, signed an executive order, mandating a thorough research into the industry. Now, the framework initiated by the White House lacks any new legislation. However, it avails a comprehensive foresight on the regulations of crypto in the country.
Furthermore, the White House framework reportedly harness the findings enveloped in about nine reports submitted to Biden. Additionally, it illustrates “the input and expertise of diverse stakeholders across government, industry, academia, and civil society.”
Reportedly, the White House framework advocates efficient consumer protections, as well environment and national security. It further encourages private-sector innovation and co-operation on a global level.
White House Framework outlines roles for SEC, CFTC, Treasury
According to the framework, regulators like SEC and CFTC must continue to enforce the law in the industry. More so, they must take charge of any complaints emanating from consumers within the space. The White House framework further advocates the U.S. Treasury to collaborate with necessary financial institutions to track and tame possible cyber risks via its data sharing and analysis. It also admonished the Treasury to collaborate with regulators to give regulatory guidance to crypto firms.
Additionally, the White House framework wants the Treasury to extend its role to U.S. allies. This, as reported, will be possible via international organizations, including Organization for Economic Co-operation and Development and the Financial Stability Board. Furthermore, the Treasury stays mandated to carry out an illicit finance risk evaluation on decentralized finance before March, 2023. It must also carry out a similar assessment on non-fungible tokens before August, 2023.
Notably, this White House framework comes a few days after the US Office of Science and Technology Policy (OSTC), in a report, hinted that crypto mining ferments HG emissions and more pollution. This, according to the report, threatens government’s efforts to “achieve a net-zero carbon pollution.”The report added that about 0.2 to 0.3 of global greenhouse gas emissions come from the menace of crypto mining. It urged federal agencies to avail technical support to “states, communities, the crypto-asset industry, and others.
It further advises the agencies to collect and analyze necessary information from miners of cryptocurrencies. This, as reported, must be done in a “privacy-preserving manner.” OSTC believes such tends to facilitate an “evidence-based decisions on the energy and climate implications of crypto-assets.”