As quoted by several reports, the Joe Biden administration offered its response to the President’s executive order on cryptocurrencies – Ensuring Responsible Development of Digital Assets – which was issued earlier this year. It was reported that the response was made by the White House on Friday.
The Joe Biden administration asked the necessary enforcement agencies to heavily pursue the digital asset sector and identify holes in their regulation. It also urged regulators such as the Securities and Exchange Commission and the CFTC to issue new guidelines for potential risks of digital assets such as fraud and money laundering.
Despite a growing role as a financial power, cryptocurrencies have the potential to be misused by miscreants. They can global harm global finance as claimed by the report. Director of the U.S. National Economic Council – Brian Deese – said that cryptocurrencies can harm financial stability and national security if left unregulated.
Although the Treasury Department will oversee the efforts toward CBDC by the necessary leading government agencies, the White House has not clearly approved the idea of a digital dollar project as at this point in time, in line with Biden’s executive order in March titled – Responsible Development of Digital Assets.
Treasury Secretary – Janet Yellen – praised the new innovations in the digital asset sector but cautioned that inadequate regulations can expose the financial system and people involved to significant harm. In her words “Innovation is one of the hallmarks of a vibrant financial system and economy, but as we’ve painfully learned from history, innovation without adequate regulation can result in significant disruptions and harm to the financial system and individuals,” Yellen told media persons”.
The White House said the President might consider appealing to the Congress to amend the Bank Secrecy Act (BSA) to include cryptocurrency exchanges, NFT platforms, and other service providers. The President could also consider government recommendations to create a national framework to regulate non-bank payment providers.
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