US Treasury issues framework addressing engagement on crypto with foreign regulators

cointelegraph.com:

The United States Department of the Treasury has delivered to President Joe Biden a framework on crypto for U.S. government agencies to work with their foreign counterparts.

In a Thursday announcement, the U.S. Treasury said it had reported on a regulatory framework for cryptocurrencies in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the U.S. Agency for International Development and other government agencies as required by President Biden’s executive order on digital assets issued in March. According to the Treasury Department, the framework aimed to encourage the development of digital assets while respecting “America’s core democratic values” and ensuring the stability and safety of the global financial system and international monetary system.

President Biden’s executive order required the Treasury Department to lead an interagency effort in developing policy recommendations for mitigating risks associated with crypto. The government department cited the need for “international cooperation among public authorities, the private sector, and other stakeholders” given the potential risks to investors with “uneven regulation, supervision, and compliance across jurisdictions.”

“Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering,” said the Treasury report.

In terms of international cooperation and coordination, the Treasury Department said it would engage with policymakers and