The U.S. pushes for innovation in digital asset regulation, arousing much attention

Recently, U.S. President Biden signed an executive order titled “Ensuring the Responsible Development of Digital Assets”, calling on government agencies such as the Federal Reserve and the Treasury Department to evaluate the benefits and risks of digital assets and explore the development of a U.S. central bank digital currency. .

The scale of digital assets in the United States has grown rapidly. According to the published statistics, in November 2021, the total market value of digital assets issued by non-state-owned companies in the United States has reached 3 trillion US dollars, which is much higher than about 14 billion US dollars in early November 2016.

The explosive growth of digital assets has also brought greater attention to potential issues including data privacy and security, financial stability and systemic risk, financial crime, national security, financial inclusion and fairness, and other issues. Institutions and people in the United States, including cryptocurrency exchanges, lawmakers, and financial practitioners, are looking forward to clearer industry regulatory rules.

The executive order highlights six key priorities, namely consumer and investor protection, financial stability, illicit finance, U.S. leadership and economic competitiveness in the global financial system, financial inclusion, and responsible innovation. It can be seen that this decree attaches great importance to the supervision of digital asset risk.

The executive order makes clear that cybersecurity issues and market failures at major digital asset exchanges and trading platforms have cost consumers, investors and businesses billions of dollars. The United States should ensure that security measures are in place and promote the development of digital assets to protect consumers, investors, and businesses, maintain privacy, and prevent arbitrary or illegal surveillance that could lead to human rights violations.

The executive order states that for U.S. and global financial stability, some digital asset trading platforms and service providers are rapidly growing in size and complexity and may not be subject to or comply with specific regulations or oversight, and these institutions need to find oversight to address the risks method.

The executive order also addresses the need to mitigate illicit financial and national security risks posed by the misuse of digital assets, such as their use as a means of money laundering, cybercrime, and ransomware. The Executive Order argues that current and future digital asset systems should have appropriate controls and accountability to promote high standards of transparency, privacy, and security.

In response to the above risks, the executive order requires relevant regulatory agencies including the U.S. Office of Science and Technology Policy, the Federal Reserve, the U.S. Federal Trade Commission, the Consumer Financial Protection Bureau, the U.S. Securities Regulatory Commission, the U.S. Commodity Futures Trading Commission and other relevant regulatory agencies to form multi-party cooperation in different jurisdictions to evaluate Positive and negative impacts of U.S. digital assets, identify regulatory gaps, and call on regulators to ensure adequate oversight, assess opportunities to mitigate such risks through regulation, and develop coordinated action plans to guard against any systemic financial and other risks posed by digital assets .

While acknowledging the importance of cryptocurrencies and requiring stronger regulation, this executive order also encourages the research and development of central bank digital currencies, highlighting that the U.S. government is trying to reverse its backwardness in the field of legal digital currencies, thereby promoting the U.S. in digital asset technology Aspects of competitiveness.

Analysts believe that this presidential executive order will not only affect the development of digital assets in the United States, but also affect the decision-making of other countries. Biden wants to put the United States in the leading position in this industry, and given the hegemony of the United States in the existing world financial system, this will prompt other countries to think more deeply about this and make corresponding decisions.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-u-s-pushes-for-innovation-in-digital-asset-regulation-arousing-much-attention/
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