Fun

White House Releases ‘First-Ever’ Framework for Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear

News Feed - 2022-09-17 06:09:36

White House Releases "First-Ever" Framework for Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear


The White House has now released what it called its “first-ever” comprehensive framework for the responsible development of digital assets just over six months after U.S. President Joe Biden signed an executive order on the same matter. However, one crypto industry leader has lamented the lack of clarity and understanding of the technology in the White House’s fact sheet. Reinforcing United States Leadership in the Global Financial System


Just over six months after U.S President Joe Biden signed an Executive Order (EO) outlining the government’s multi-pronged approach toward digital assets, the White House, on September 16, unveiled what it termed the “first-ever comprehensive framework for digital asset development.”


Explaining the Biden administration’s decision to release the framework, the White House said while digital currencies may have the potential to “reinforce the U.S. leadership in the global financial system,” they still pose risks to investors and consumers as evidenced by the crypto market’s crash in May.


Therefore, to protect millions of people, including United States residents that have acquired digital assets, U.S government agencies have developed frameworks that advance six key priorities identified in the EO. The six key priorities identified in the March 9 EO are consumer and investor protection, financial stability, countering illicit finance, the United States’ leadership in the global financial system, financial inclusion, and responsible innovation.


According to the White House fact sheet, nine reports articulating a “clear framework for responsible digital asset development and [paving the] way for further action at home and abroad” have since been submitted to President Biden. In addition to advocating for orderly digital asset development, the nine reports are also said to identify roles government agencies must play to help American companies.


“The reports call on agencies to promote innovation by kickstarting private-sector research and development and helping cutting-edge U.S. firms find footholds in global markets. At the same time, they call for measures to mitigate the downside risks, like increased enforcement of existing laws and the creation of commonsense efficiency standards for cryptocurrency mining,” the White House’s fact sheet reads.


Besides focusing on privately created or issued digital currencies, the nine reports, according to the White House, also encourage the U.S. Federal Reserve “to continue its ongoing CBDC [central bank digital currency] research, experimentation and evaluation.” They also call for the “creation of a Treasury-led interagency working group to support the Federal Reserve’s efforts.”


Perceived Lack of Clarity


Meanwhile, in her reaction to the White House’s publishing of the fact sheet, Sheila Warren, the CEO of the Crypto Council for Innovation, lamented the lack of clarity and understanding of the technology in some of the recommendations made. She noted: 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 back her assertions, Warren referred to a September 15 U.S. Senate Committee hearing convened to review the Digital Commodities Consumer Protection Act. According to the CEO, leaders at the hearing “seemed worried about other countries overtaking the U.S.”


In concluding her remarks, Warren said her organization stands ready to help U.S. lawmakers understand the digital asset industry which she called “a complex and nuanced space.” Tags in this story biden executive order, central bank digital currency, Crypto Council for Innovation, cryptocurrency mining, Digital Assets, Digital Commodities Consumer Protection Act, financial inclusion, global financial system, Sheila Warren, Terra LUNA and UST fallout, U.S. Federal Reserve, U.S. President Joe Biden, White house


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Thai SEC Proposes Banning Crypto Businesses From Staking and Lending Activities REGULATION | 17 hours ago US Senator Wants Congress to Step in With Crypto Guidance — Urges SEC to Provide Much More Clarity on Regulations REGULATION | 20 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleThai SEC Proposes Banning Crypto Businesses From Staking and Lending Activities Next articleExaminer Appointed to Celsius Bankruptcy Case, Crypto Lender Files for Access to $23M in Stablecoins Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales


Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

News Feed

Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says
Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says Russian companies may start transacting in cryptocurrency with partners abroad as early
Coinbase Shutting Down Most Crypto Services in Japan After Series of Job Cuts Globally
Coinbase Shutting Down Most Crypto Services in Japan After Series of Job Cuts Globally The Nasdaq-listed cryptocurrency exchange Coinbase is closing down most of its operations in
Bitcoin.com Wallet Adds ERC-20 Tokens
Bitcoin.com Wallet Adds ERC-20 Tokens TheBitcoin.comTeam is excited to announce the integration ofERC-20 tokensinto theBitcoin.com Wallet. That means anyone can now buy, sell, rece
Former US Treasury Secretary Larry Summers Compares FTX Collapse to Enron Fraud
Former US Treasury Secretary Larry Summers Compares FTX Collapse to Enron Fraud Former U.S. Treasury Secretary Lawrence Summers has compared crypto exchange FTX to Enron, noting th
Amaka Nwaokocha2 hours agoRipple Labs to revolutionize real estate industry through tokenizationAn innovative pilot program aims to enable users to tokenize real estate assets and utilize them as collateral for loans, le
Centralized Exchange Operators Believe Low Liquidity on DEX Platforms Stops User Migration
Centralized Exchange Operators Believe Low Liquidity on DEX Platforms Stops User Migration Centralized cryptocurrency exchanges (CEX) operators say they are unfa
XRP Price Prediction: Analyst Reveals ‘Worst Case Scenario’ With Head And Shoulders Formation
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
ETH 2.0 Contract Exceeds 7.4 Million Ether, Close to $30 Billion Locked, Liquid Staking Pools Grow
ETH 2.0 Contract Exceeds 7.4 Million Ether, Close to $30 Billion Locked, Liquid Staking Pools Grow The Ethereum 2.0 contract now has more than 7.4 million ether worth over $29.3 bi
Report: Bitcoin Mining Firm Northern Data AG Plans for a $500 Million IPO
Report: Bitcoin Mining Firm Northern Data AG Plans for a $500 Million IPO While the public prepares for the upcoming Coinbase public offering, the mining firm No
CertiK discovered $5M security flaw in Wormhole bridge on Aptos
Christopher Roark4 hours agoCertiK discovered $5M security flaw in Wormhole bridge on AptosA flaw in the bridge could have allowed an attacker to produce fake token transfers, but it was discovered and patched before any
Wirex CEO Pavel Matveev Shares Expansion Plans for 2020
Wirex CEO Pavel Matveev Shares Expansion Plans for 2020 International payment and crypto service Wirex has enjoyed a productive year. Over the course of 2019, partnerships have b
Cointelegraph Accelerator7 hours agoFintech, DeFi, GameFi, and more: Web3 startups kick off Cointelegraph Accelerator second cohortSixteen startups selected from over 1000 applications will present their projects to a gl