19 September 2022
US authorities businesses have submitted 9 experiences up to now in response to President Biden’s Government Order on Guaranteeing Accountable Improvement of Digital Belongings revealed in March 2022.
Highlights from the experiences embrace:
Defending customers
1. The Securities and Trade Fee (SEC) and Commodity Futures Buying and selling Fee (CFTC) are inspired to “aggressively pursue investigations and enforcement actions”.
2. The Shopper Monetary Safety Bureau (CFPB) and Federal Commerce Fee (FTC) ought to “redouble their efforts” to sort out unfair and abusive practices.
3. Authorities businesses such because the Monetary Literacy Training Fee (FLEC) ought to enhance analysis and public consciousness efforts.
A survey carried out by the Federal Reserve reveals how shopper fee preferences could change over time or in numerous circumstances, as evidenced by the notable lower in the usage of money through the COVID- 19 pandemic. Supply: U.S. Division of the Treasury “The Way forward for Cash and Funds — Report Pursuant to Part 4(b) of Government Order 14067”
4. The Treasury will work with monetary establishments to bolster their capability to establish and mitigate cyber vulnerabilities, and assist develop new applied sciences with regulatory steering.
5. The Workplace of Science and Know-how Coverage (OSTP) and the Nationwide Science Basis (NSF) will develop a Digital Belongings Analysis and Improvement Agenda to help basic analysis.
6. The Division of Power, the Environmental Safety Company, and different businesses will take into account additional monitoring digital belongings’ environmental impacts to mitigate environmental harms.
A survey carried out by the Federal Reserve offers a glimpse into the fee selections made by customers in recent times. Supply: U.S. Division of the Treasury “The Way forward for Cash and Funds — Report Pursuant to Part 4(b) of Government Order 14067”
7. The Federal Reserve plans to launch FedNow—an instantaneous, 24/7 interbank clearing system for immediate funds—in 2023.
8. The President will take into account making a federal framework to control nonbank fee suppliers.
9. The Monetary Stability Oversight Council (FSOC) will publish a report discussing digital belongings’ financial-stability dangers in October 2022.
Preventing illicit finance
10. The President will take into account calling upon Congress to amend the Financial institution Secrecy Act (BSA), anti-tip-off statutes, and legal guidelines towards unlicensed cash transmitting to use explicitly to digital asset service suppliers.
11. The President will take into account urging Congress to boost the penalties for unlicensed cash transmitting to match the penalties for comparable crimes beneath different money-laundering statutes.
The Federal Commerce Fee (FTC) had greater than 46,000 reported incidents of fraud between January 1, 2021, and March 31, 2022. Supply: U.S. Division of the Treasury “Crypto-Belongings:
Implications for Shoppers, Traders, and Companies”
12. The President will take into account urging Congress to amend related federal statutes to let the Division of Justice prosecute digital asset crimes in any jurisdiction the place a sufferer of these crimes is discovered.
13. The Treasury will full a bootleg finance danger evaluation on decentralised finance by the tip of February 2023 and an evaluation on non-fungible tokens by July 2023.
A digital greenback
14. The federal government has developed Coverage Aims for a US CBDC System, however additional analysis and improvement is required.
15. The Federal Reserve ought to proceed its ongoing CBDC analysis, experimentation, and analysis.
16. The Treasury will lead an interagency working group to contemplate the potential implications of a US CBDC and leverage cross-government technical experience.
Janet Yellen
Commenting on the White Home’s state on the digital asset experiences, Treasury Secretary Janet Yellen stated,
“The experiences clearly establish the true challenges and dangers of digital belongings used for monetary providers. If these dangers are mitigated, digital belongings and different rising applied sciences might provide important alternatives.
These experiences and their suggestions present a robust basis for policymakers as we work to understand the potential advantages of digital belongings and to mitigate and minimise the dangers.”
Brian Deese
Nationwide Financial Council Director Brian Deese and Nationwide Safety Advisor Jake Sullivan stated,
“Collectively, we’re laying the groundwork for a considerate, complete method to mitigating digital belongings’ acute dangers and—the place confirmed—harnessing their advantages.
We stay dedicated to working with allies, companions, and the broader digital asset group to form the way forward for this ecosystem.”
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