The Biden administration’s collective action, announced in a series of reports, follows an executive order the president signed earlier this year “to ensure the responsible development of digital assets“.
“Innovation is one of the hallmarks of a Finance system and a vibrant economy, but as we have painfully learned from history, without proper regulation it can lead to significant disruption and harm to the financial system and individuals,” said Treasury Secretary Janet Yellen.
The reports urge regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)to issue guidance and regulations on the risks of the digital asset ecosystem, including the possibility of cryptocurrencies being used to money laundering or fraud.
The White House also said that President Joe Biden would consider asking the Congress that modifies the Bank Secrecy Act (BSA) to apply to digital asset service providers, including cryptocurrency markets and non-fungible token platforms, or NFT.
The BSA requires lenders to report suspicious transactions to the Treasury Department.
Biden will also consider recommendations from the agencies to create a federal framework that oversees non-bank payment providers.
Source: Ambito
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