The Treasury report was needed under President Joe Biden’s govt order on digital assets issued in March.
The US Department of the Treasury has delivered to President Joe Biden a framework on crypto for U.S. government agencies to figure with their foreign counterparts.
In a Thursday announcement, the U.S. Treasury said it had reported on a regulatory framework for cryptocurrencies in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development and alternative government agencies as required by President Biden’s govt order on digital assets issued in March. in step with the treasury department, the framework aimed to encourage the event of digital assets whereas respecting “America’s core democratic values” and ensuring the soundness and safety of the global financial system and international monetary system.
President Biden’s executive order needed the treasury department to lead an interagency effort in developing policy recommendations for mitigating risks related to crypto. the govt department cited the necessity for “international cooperation among public authorities, the personal sector, and alternative stakeholders” given the potential risks to investors with “uneven regulation, supervision, and compliance across jurisdictions.”
“Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by alternative countries challenges the flexibility of the us to analyze illicit digital quality dealing flows that often jump overseas, as is usually the case in ransomware payments and alternative cybercrime-related money laundering,” said the Treasury report.
In terms of international cooperation and coordination, the treasury department said it'd interact with policymakers and regulators at the G7 on problems associated with digital assets, including central bank digital currencies (CBDC), integration new technologies into the international standard. The us will work with G20 member countries to spot potential risks to monetary stability because of digital assets, push for crypto laws, and confer with members relating to “macro-financial challenges.”
( Turner Wright, Cointelegraph,2022 )