White House Launches 'First' Framework for Digital Asset Development

The White House has now announced the "first" comprehensive framework for the responsible development of digital assets, just six months after US President Joe Biden signed an executive order on the same issue. However, one crypto industry leader lamented the lack of clarity and understanding of the technology in the White House fact sheet.

Strengthening U.S. Leadership in the Global Financial System
Six months after U.S. President Joe Biden signed an Executive Order (EO) outlining the government's multifaceted approach to digital assets, the White House announced on Sept. "The name was revealed. .”

The White House, explaining the Biden administration's decision to disclose the framework, said that while digital currencies have the potential to "strengthen American leadership in the global financial system," they still pose risks to investors and consumers, as evidenced by the collapse of the cryptocurrency market. . In May.

Therefore, to protect millions of people, including U.S. residents who acquire digital assets, U.S. government agencies have developed a framework that advances the six key priorities identified in EO. The six key priorities identified at the March 9 EO are consumer and investor protection, financial stability, countering illicit finance, American leadership in the global financial system, financial inclusion, and responsible innovation.

Nine reports have since been submitted to President Biden, setting out "a clear framework for responsible digital asset development and [packaging] for further action at home and abroad," according to the White House fact sheet. In addition to advocating for the orderly development of digital assets, nine reports identify the role government agencies should play in helping US businesses.

“This report urges institutions to spur innovation by initiating private sector research and development and helping cutting-edge US companies find a foothold in global markets. At the same time, they call for measures to mitigate downside risks, such as strengthening existing laws and creating common-sense efficiency standards for cryptocurrency mining.

In addition to focusing on privately created or issued digital currencies, nine reports recommend the U.S. Federal Reserve to “continue ongoing central bank digital currency [CBDC] research, experimentation, and evaluation,” according to the White House. They also call for "the creation of an interagency working group led by the Treasury to support the Fed's efforts."

Perceived lack of clarity
Meanwhile, in response to the White House fact sheet posting, Crypto Council for Innovation CEO Sheila Warren lamented the lack of clarity and understanding of the technology in some of its recommendations. She pointed out:

"This is surprising given the clear instructions from the EO and work from Members of Congress to move things forward. Regulation by enforcement is not regulatory clarity. If we regulate by enforcement, it also gives other countries a runway to figure out how the tech works for their interests, which may be contrary to those of the U.S."

To support her argument, Warren referred to a September 15 US Senate Committee hearing convened to review the Digital Commodities Consumer Protection Act. Hearing leaders "appeared to be worried about other countries overtaking the United States," according to the CEO.

Closing her speech, Warren said her organization is ready to help US lawmakers understand the digital asset industry she calls "a complex and nuanced space."

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