The US Treasury has delivered a framework that responds to President Biden’ss Executive Order on Ensuring Responsible Development of Digital Assets, which signalled the administration’s desire to ensure that cryptocurrency doesn’t introduce risks that could harm either individual investors or the wider economy at home and abroad.
The framework offers a familiar Biden administration approach, by suggesting wide engagement with allies and international institutions to create mutually agreeable arrangements. In the field of crypto – or “digital assets” to use the administration’ preferred nomenclature – that means working with the G7, G20, OECD, International Monetary Fund, World Bank and others “to promote the development and adoption of robust policies for digital assets such that they are developed in a responsible manner and in line with US values.”
Illicit digital asset transaction flows frequently jump overseas, as is often the case in ransomware payments.
And it’s not just about values. The framework suggests that if America leads discussion of digital assets, especially central bank digital currencies, it will create “opportunities for US companies to lead in the development of these technical systems.”
The framework document also states that the administration sees a role for stablecoins, or any other form of digital asset that helps to grease the wheels of international trade. Again, international collaboration is suggested as the way to frame appropriate…
