Crypto: The White House publishes its first newsletter! If the American legislator is particularly attentive to the question of regulation, the White House has never published a report or fact sheet on digital assets.
Following the Biden decree, several federal agencies, therefore, worked on the subject from several angles. The newsletter, published yesterday on the White House website, compiles the various analyzes and recommendations of these agencies.
The report identifies 7 separate topics.
It was by compiling research data from the past six months from nine federal agencies that the White House released its first ' comprehensive framework ' for digital assets. An assumed global framework:
"articulate a clear framework for the responsible development of digital assets and pave the way for further action at home and abroad."
Published on the White House website yesterday, the fact sheet is extremely clear. In order to be as exhaustive as possible, it identifies 7 distinct subjects:
1. Protection of consumers, investors, and businesses
2. Promoting access to reliable and affordable financial services
3. Promote financial stability
4. Advancing Responsible Innovation
5. Strengthening American leadership on the subject of digital assets
6. The fight against illicit financing
7. Exploring avenues for the establishment of a central bank digital currency (CBDC)
Seven topics on which the various stakeholders will have to work. As we will see in the next section, the document places particular emphasis on the search for synergies between market players.
Good to know: It was following President Biden's executive order to ensure responsible development of digital assets that federal agencies worked on the subject.
A report that offers concrete solutions.
For each of the previously mentioned aspects, the information sheet is not content to simply list the problems, it also seeks to provide concrete solutions. Let's take several examples.
For consumer protection, the reports encourage the SEC (Securities and Exchange Commission) and the Commodity Futures Trading Commission (CFTC) to tighten the screws and impose exemplary sanctions against illegal practices in the crypto sphere. The report also encourages the various players to better map the risks, both current and future.
On the aspect of central bank digital currencies, the various reports from the federal agencies urge the creation of a working group between the agencies. According to the suggestions made, this could be led by the Treasury.
Its objective would be to continue research and set up several experiments. If we focus on the issue of accessibility to financial services, the agencies consider that it could be interesting to create a federal framework for non-bank payment providers. Another recommendation is to develop instant payment systems. The FED plans to launch FedNow in 2023.
But the report also details several avenues for strengthening American leadership. Thus, organizations such as the State Department or the Ministry of Justice could strengthen their collaborations in foreign countries.
The development of bilateral agreements between the United States and other countries is also discussed and encouraged. Competent organizations such as the Treasury or USAID will also be able to study avenues for providing technical assistance to developing countries on the issue of digital assets.
The climate issue remains at the heart of the debate!
Often criticized for their energy consumption, Bitcoin and Proof of Work blockchains are the subjects of an ongoing debate on the acceptability of their carbon footprint.
On this axis, the recommendations of the various agencies are clear: ensure in-depth monitoring of the energy consumption of blockchains. The report published by the White House also shows a desire to see different organizations collaborate on this subject. For many, this ultimately casts doubt on a possible ban on mining in the land of Uncle Sam.
Regulation: good or bad news for the crypto market?
Proponents of pure decentralization sometimes have difficulty with the regulation of the sector. However, today it seems that this is the path taken by the main players. Like the Binance platform, which behaved indomitable for a long time before becoming much more attentive to the various regulators.
If the crypto market has probably not yet reached full maturity, it can no longer hide behind its novelty. For many, if regulation could limit its disruptive side, it nevertheless becomes necessary. In particular to see institutional investors arrive massively on the market. An influx would then create the conditions for a new surge in prices.
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