White House Office of Science and Technology Director Clarifies Cryptocurrency Policy

On March 9, the White House finally announced a high-profile policy directive on cryptocurrencies and distributed ledger technology, with President Biden issuing the Executive Order on Ensuring the Responsible Development of Digital Assets. On the same day that the order was signed, Dr. Alondra Nelson, Director of the Office of Science and Technology Policy and Deputy Assistant to the President, published a blog post describing her priorities for U.S. cryptocurrency regulation.

Dr. Alondra Nelson, who writes the blog, has served as Director of the Office of Science and Technology Policy (OSTP) since February 17, 2022, having served since day one of the Biden administration and was instrumental in early directives such as restoring Trust in scientific integrity and evidence-based decision-making, as well as advancing racial equity and supporting underserved communities.

Nelson’s role includes supporting a Cabinet-level Science and Technology Advisory Council and serving as an adviser to the President on the science, engineering and technology aspects of the economy. That means she may be one of the most influential people in the White House on digital asset issues. For the cryptocurrency industry, her blog helps decipher what the White House leadership is currently thinking about the possibilities of digital assets in the United States.

In her blog titled ” Towards Responsible and Equitable Digital Asset Innovation, ” she discusses three key takeaways, primarily the potential of digital assets to help the unbanked, the cryptocurrency industry’s commitment to vulnerable populations Predatory risk, and environmental challenges posed by certain digital assets that require high levels of computing power.

Over the years, the cryptocurrency industry has demonstrated the possibility of how digital assets can positively impact society, and now finds itself at a critical juncture where the validation of such use cases will face scrutiny from the nation’s top scientists and technologists.

Summary of ” Towards Responsible and Equitable Digital Asset Innovation 

Nelson starts by pointing out that, according to a November 2021 study by the Pew Research Center, one in six Americans has used cryptocurrency as a payment. Nelson described that distributed ledger technology is already being used around the world to support supply chains and support artists in new ways.

“Fully and equitably realized, digital assets can be cheaper and more efficient than traditional financial instruments, allowing a Pennsylvania father to send money to his Honduran daughter anytime, or a Dallas small business to access the capital it needs to expand,” Nelson said. , with confidence and low risk. While balancing these opportunities, Nelson advised that the risks of digital assets in terms of impacting consumers, communities, climate, and financial stability in the U.S. and globally must also be considered. Nelson describes the volatility of digital asset investments Even those most bullish on the cryptocurrency ecosystem have to agree with her on the dangers that sex poses to those less resilient to risk.

Nelson then listed three key areas where the executive order could provide the U.S. with national leadership on digital assets. These areas include:

1) Advance financial equity and inclusion;

2) curb financial plunder;

3) Understand the climate impact of digital assets.

She sheds light on each area, helping and illuminating what people in the White House think about digital assets.

Advancing Financial Equity and Inclusion

Historically, new technologies can benefit the same groups, while those who are not wealthy are forced to bear the highest costs, Nelson noted.

Acknowledging that digital assets can help close the gap for low-income and minority households; Nelson said the U.S. government is committed to responsible digital asset innovation, prioritizing equity, inclusion, and other American values, and could be leveraged in a central bank digital currency “Design” in (CBDC). Nelson’s point, which highlights that the high volatility of some cryptocurrencies could end up affecting those with a lower risk tolerance, loops back to her original concern that those with a lower risk tolerance end up bearing the highest costs.

curb financial plunder

Top White House executives don’t use crypto-industry terms very often, so for many in the industry, when Nelson said digital assets offer “… new opportunities for scammers and fraudsters,” There will be resonance. Explaining her concerns about the risks of financial predation in the digital asset space, Nelson said: “For example, the risks associated with investing in cryptocurrencies are not immediately disclosed, which can mislead, deceive and ultimately harm consumers and investors.”

Part of the order directs the U.S. Treasury Department to focus on potential harm to consumers, businesses and investors, Nelson noted, as a way of showing U.S. leadership in this area. The second part clarifies from a policy perspective how important consumer protection is to the White House as a priority.

Understanding the Climate Impact of Digital Assets

Nelson described that “certain types of digital assets currently require significant computing power, often in economies that rely on carbon-intensive energy supplies — the growth of digital assets at a time when we need to move to carbon-free resources to combat climate change. There could be environmental challenges.”

Nelson’s current focus on Bitcoin’s energy use should be a signal to the crypto community that Biden’s climate change goals are mandatory, and that any behavior that creates friction in the effort could face policy repression. Nelson also noted that the White House will also explore how blockchain technology could potentially benefit the environment, including by facilitating transactions related to responsibility for greenhouse gas emissions, water and other natural or environmental resources.

Ultimately, whether it’s access to financial services, financial looting, or the use of energy by specific types of distributed ledger technology, the American public has an opportunity to lead the world in technology as the government begins to enforce the reporting required in the order. One aspect, and what Nelson shares with the American public, is the transparency of policymaking around digital assets, which is likely to represent the future of global finance for decades to come.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/white-house-office-of-science-and-technology-director-clarifies-cryptocurrency-policy/
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