Biden Administration Unveils New Framework for ‘Responsible Development’ of Crypto Assets

The White House is revealing new comprehensive guidelines for the responsible development of crypto assets in the US economy.

In a new press release, the Biden Administration is unveiling the first-ever framework for the development of digital assets.

The guidelines were created using information gathered after Biden made an executive order in March mandating that government agencies research the pros and cons of crypto and blockchain technology.

“The nine reports submitted to the President to date, consistent with the executive order’s deadlines, reflect the input and expertise of diverse stakeholders across government, industry, academia, and civil society.

Together, they articulate a clear framework for responsible digital asset development and pave the way for further action at home and abroad.”

To foster responsible innovation in the world of crypto, the White House recommends developing a digital assets research and development agenda to study next-generation scalability, programmability, cybersecurity, and ways to make digital assets more eco-friendly.

It also recommends educating stakeholders on how to safely invest in crypto assets.

Furthermore, the guidelines ask federal agencies to contribute to the development of virtual currencies.

It encourages the Treasury Department and other financial regulators to “provide innovative US firms developing new financial technologies with regulatory guidance, best-practices sharing, and technical assistance.”

It also asks the Department of Energy and the Environmental Protection Agency (EPA) to “consider further tracking digital assets’ environmental impacts; developing performance standards as appropriate; and providing local authorities with the tools, resources, and expertise to mitigate environmental harms.”

Lastly, the framework will ask the Department of Commerce to establish a forum where federal agencies, crypto firm leaders, and academics can convene to exchange ideas that could influence crypto policies.

The White House is also focused on combating predatory financial practices and illicit activities centered around digital assets.

“Some digital assets could help facilitate faster payments and make financial services more accessible, but more work is needed to ensure they truly benefit underserved consumers and do not lead to predatory financial practices.”

To counter illegal activities, the Biden Administration is calling upon Congress to amend existing laws so that they can better apply to digital assets.

“The President will evaluate whether to call upon Congress to amend the Bank Secrecy Act (BSA), anti-tip-off statutes, and laws against unlicensed money transmitting to apply explicitly to digital asset service providers – including digital asset exchanges and non-fungible token (NFT) platforms.

He will also consider urging Congress to raise the penalties for unlicensed money transmitting to match the penalties for similar crimes under other money-laundering statutes and to amend relevant federal statutes to let the Department of Justice prosecute digital asset crimes in any jurisdiction where a victim of those crimes is found.”

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