BREAKING: President Joe Biden Releases Framework on Crypto Regulation

• The US White House just released a structure on Crypto regulation in the US.
• The framework explains ways in which the financial services industry should progress to make borderless transactions easier.

The Biden administration has released a framework for cryptocurrency regulation, outlining how to crack down on fraud in the digital asset space and make cryptocurrency transactions safer.

The framework, which was released on Monday, builds on an executive order issued by President Biden in March that called for a government-wide review of cryptocurrency.

The framework identifies four key priorities for cryptocurrency regulation:

• Combating illicit activity: The framework calls for measures to prevent cryptocurrencies from being used for money laundering, terrorist financing, and other illicit activities.
• Ensuring financial stability: The framework calls for measures to protect the financial system from the risks posed by cryptocurrencies, such as systemic risk and market manipulation.
• Protecting consumers and investors: The framework calls for measures to protect consumers and investors from fraud and other risks associated with cryptocurrencies.
• Promoting responsible innovation: The framework calls for measures to encourage the responsible development and use of cryptocurrencies.

The framework does not specify how these priorities will be implemented, but it does call for the creation of a new interagency working group to coordinate federal cryptocurrency regulation.

The framework has been welcomed by some cryptocurrency industry leaders, who say it provides much-needed clarity on the regulatory landscape. However, others have criticized the framework for being too vague and for not going far enough to protect consumers and investors.

The Biden administration has said that it will continue to work with Congress to develop comprehensive cryptocurrency regulation.

Key takeaways:

• The Biden administration has released a framework for cryptocurrency regulation.
• The framework identifies four key priorities for cryptocurrency regulation: combating illicit activity, ensuring financial stability, protecting consumers and investors, and promoting responsible innovation.
• The framework does not specify how these priorities will be implemented, but it does call for the creation of a new interagency working group to coordinate federal cryptocurrency regulation.
• The framework has been welcomed by some cryptocurrency industry leaders, but others have criticized it for being too vague and for not going far enough to protect consumers and investors.

Stablecoins

The framework also mentions stablecoins, which are cryptocurrencies that are pegged to a fiat currency, such as the US dollar. Stablecoins are often used to facilitate cryptocurrency transactions and to avoid the volatility of other cryptocurrencies.

The framework notes that stablecoins could pose risks to financial stability if they are not properly regulated. The framework calls for the development of a framework for regulating stablecoins, but it does not specify what that framework should look like.

The topic of stablecoins was particularly absent from the White House announcement. However, US Treasury Secretary Janet Yellen has made it clear that she wants to see Congress introduce regulation for the sector.

The regulation of cryptocurrency is a complex and evolving issue. The Biden administration’s framework is a step in the right direction, but it remains to be seen how it will be implemented and what impact it will have on the cryptocurrency industry.