Here’s the first crypto regulatory framework by Biden White House

The Biden White House recently unveiled the first-ever framework for crypto regulation in the United States, outlining how the financial services sector should develop to facilitate borderless transactions and how to combat fraud in the market.

Although no laws have yet been required, the new instructions use the power of already-existing regulators like the SEC and the CFTC. However, investors in this emerging asset class have been interested in the long-awaited direction from Washington.

The White House’s new framework for crypto regulation includes a section on combating illegal activity in the sector, and the suggested measures seem to have some actual punch.

A White House fact sheet states that the president will consider whether to ask Congress to modify the Bank Secrecy Act, anti-tip-off laws, and laws against unlicensed money transmitting to formally apply to providers of digital asset services, such as digital asset exchanges and NFT platforms.

The president is also considering whether to ask Congress to increase the fines for unauthorized money transmission and whether to change some federal laws to enable the Department of Justice to pursue crimes involving digital assets in any location where a victim of those crimes is discovered.

The framework also suggests the possibility of “significant benefits” from a digital version of the dollar, or CBDC, issued by the U.S. central bank.

White House aims to establish the U.S. as the world leader in the crypto sector

According to the fact sheet from the White House, “digital assets and the mainstream financial system are becoming increasingly intertwined, creating channels for turmoil to have spillover effects.”

The framework continues by mentioning stablecoins specifically and warning people that, in the absence of suitable regulation, they may lead to disruptive runs.

The framework comes after President Joe Biden called on federal agencies to investigate the advantages and disadvantages of cryptocurrencies and issue public reports on their conclusions in an executive order released in March.

The White House intends to establish the nation as a leader in the administration of the crypto ecosystem domestically and overseas.