In compliance with the Executive Order issued by President Joe Biden back in March this year, the United States Treasury Department has delivered a comprehensive framework targeted at the digital currency ecosystem.
As contained in the fact sheet shared last week, the Treasury Department said the framework it sent to the President was drafted in compliance with instructions that several related government agencies should work together. The Treasury Department does confirm that it consulted and collaborated with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development (USAID), and the heads of other relevant agencies.
As revealed, the crypto framework beckons on the government to interact with its foreign allies to float a unifying crypto regulatory framework. This, the Treasury Department acknowledges, will help in avoiding slip-ups in fraudulent cases that spills overseas.
“Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial stability and the protection of consumers, investors, businesses, and markets,” the fact sheet reads, adding that “Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering.”
Treasury Department’s Crypto Framework on CBDCs
Considering the subject of Central Bank Digital Currencies (CBDCs) now going mainstream amongst a host of countries, the Treasury Department said in its delivered framework that the United States aims to lead the trend and develop the standards upon which these new classes of legal tenders can be designed.
Overall, the framework details how the United States will work with other global leaders including G7, FATF, FIUs, and OECD as it aims to protect final consumers.
“What’s outlined in the framework is intended to ensure that, with respect to the development of digital assets, America’s core democratic values are respected; consumers, investors, and businesses are protected; appropriate global financial system connectivity and platform and architecture interoperability are preserved; and the safety and soundness of the global financial system and international monetary system are maintained,” the Treasury detailed.
While many believe the US is already late in pushing for regulatory harmony bordering the crypto ecosystem, seeing the European Union has already finalized its Markets in Crypto Assets (MiCA) framework.