US Treasury Outlines Plans For Improved International Engagement On Digital Assets
The US Treasury delivered a Framework for International Engagement on Digital Assets, developed in consultation with relevant agencies, to President Biden as required by his executive order on digital assets.
The framework reflects the Biden administration's approach to creating mutually acceptable arrangements with allies and global institutions.
Among the executive order, requirements are the production of reports on digital currencies and the consideration of new regulations. The order also highlights the risks cryptocurrency poses to the economy, national security, and the environment.
A variety of regulations will apply to digital assets as a result of this approach. As per the press release, “Technology-driven financial innovation is frequently cross-border and can impact households, businesses, and governments across the world.”
The framework includes goals such as ensuring consumer and financial institution protection from cryptocurrency fraud, promoting equitable access to digital assets, and supporting cryptocurrency-specific technologies.
The US Treasury published a fact sheet with the following objectives, as well as a description of how the U.S. and its agencies interface with other agencies around the globe.
• By promoting technology and regulating standards reflecting U.S. values, protect U.S. consumers, investors, and businesses.
• Counter and respond to efforts by foreign adversaries to promote their own standards and protocols and mitigate risks of illicit finance and national security posed by the misuse of digital assets
• Mitigate the effects of systemic risk on the US and global financial stability
• Ensure that financial services are safe, affordable, and accessible.
To meet the policy objectives of the executive order, the Treasury plans to expand its involvement in international forums on many of these issues. This includes relationships with the Group of Seven, the World Bank, and the Financial Action Task Force, which sets standards against money laundering.
Bilateral cooperation will also be fostered between nations so that international transactions can be controlled and sanctions can be avoided. As governments all over the globe study cryptocurrencies and other digital assets, they are considering how they can be regulated and possibly incorporated into standard monetary procedures.
CBW - External Analyst