The U.S. Treasury Department delivered a framework on crypto assets to President Joe Biden, fulfilling an obligation directed in the president’s March executive order on crypto.
U.S. Treasury Secretary Delivers Crypto Framework to President Biden
The U.S. Treasury Department on Thursday released afact sheettitled “Framework for International Engagement on Digital Assets.”
It states that the Treasury Secretary delivered to President Joe Biden “a framework for interagency engagement with foreign counterparts and in international forums as directed by the President’s Executive Order on ensuring the responsible development of digital assets.” Biden’s presidential decree on crypto regulation was issued on March 9.
The framework calls for the United States and its foreign allies to work together to create international standards to regulate crypto assets. The Treasury explained that.
Uneven regulation, supervision, and compliance across jurisdictions creates arbitrage opportunities and increases risks to financial stability and the protection of consumers, investors, businesses, and markets.
“Inappropriate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other jurisdictions, as is often the case with ransomware payments and other cybercrime-related money laundering, frequently jump overseas illicit digital asset transaction challenges the U.S. ability to investigate the flow,” the Department added.
The Treasury Department further explained that the U.S. must work with international partners and be a leader in discussions regarding central bank digital currencies (CBDCs) and digital payment architecture.
“Such international work should continue to address the full range of issues and challenges posed by digital assets, including financial stability, consumer and investor protection, business risks, and money laundering, terrorist financing, proliferation financing, sanctions evasion, and other illicit activities,” Treasury noted. The report stated.
The fact sheet also notes that the G7 and G20, Financial Stability Board (FSB), Financial Action Task Force (FATF), Egmont Group of Financial Intelligence Units (FIU), Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), World Bank and other International Development Banks (MDBs), and other major international transactions in the United States.
“What is outlined in the Framework is a commitment that, with respect to the development of digital assets, core American democratic values will be respected; consumers, investors, and businesses will be protected; appropriate global financial system connectivity and platform and architecture interoperability will be maintained; and intended to ensure that the safety and soundness of the global financial system and the international monetary system are maintained.” The Treasury detailed that.
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