Biden administration publishes framework for regulation of cryptocurrency, NFTs

The Biden administration Friday printed the “First-Ever Complete Framework for Accountable Improvement of Digital Property” consistent with a March govt order obligating authorities companies and sectoral regulators to conduct analysis on the results of cryptocurrencies on client safety and the dangers and advantages of deploying a Central Financial institution Digital Foreign money (CBDC).

The framework encourages sectoral regulators such because the Securities and Change Fee (SEC) and the Commodities Futures Buying and selling Fee (CFTC) to “aggressively pursue investigations and enforcement actions towards illegal practices within the digital property house.” The Client Monetary Safety Bureau (CFPB) and Federal Commerce Fee (FTC) are additionally urged to “redouble” their monitoring of client complaints within the digital property house.

The announcement proposes cooperation between the White Home and Congress to amend federal legal guidelines. The White Home will think about “urging Congress to boost the penalties for unlicensed cash transmitting to match the penalties for related crimes underneath different money-laundering statutes and to amend related federal statutes to let the Division of Justice prosecute digital asset crimes in any jurisdiction the place a sufferer of these crimes is discovered.”

The US Division of the Treasury is now required to finish a bootleg finance danger evaluation on decentralized finance by the tip of February 2023 and an evaluation on non-fungible tokens by July 2023. The Treasury is empowered to steer a working group to “think about the potential implications of a U.S. CBDC, leverage cross-government technical experience, and share info with companions.”