The US Treasury has released the framework to regulate cryptocurrency and has called on its global allies to do the same. This comes as the US has been progressing its the creation of its CBDC.
The framework that was released with the executive order from president Joe Biden announced that the treasury aims to regulate cryptocurrencies to:
- Protect consumers, investors, and businesses in the United States and globally by promoting technology and regulatory standards that reflect U.S. values;
- Protect the U.S. and global financial stability and mitigate systemic risk;
- Mitigate illicit finance and national security risks posed by the misuse of digital assets and counter and respond to efforts by foreign adversaries to drive standards and promote their protocols;
- Reinforce U.S. leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets and by advancing technology and regulatory standards that align with U.S. values;
- Promote access to safe and affordable financial services; and
- Support technological advances that promote responsible development and use of digital assets by advancing research and relationships that increase shared learning.
The US treasury also called on its global allies to do the same and prevent potential risks with an unregulated system.
The US continues to work on its CBDC taking the first step in doing so in January of 2022. A Central Bank Digital Currency (CBDC) is the digital version of the country’s fiat currency. The US stresses that this will be a great innovation for the world of currencies but still has its flaws that need to be worked on for it to become useable.
