White House’s first crypto framework and missed opportunities — Law Decoded, Sept. 12-19
By the end of last week, the federal agencies presented the results of their six-month-long work on the principal directions for digital assets regulation in the United States. The resulting first-ever crypto framework, published on the White House website, may not contain many surprises or exact details, but, as a part of President Joe Biden’s executive order, it will undoubtedly affect the policymaking decisions to come.
Perhaps the most important section of the framework is dedicated to central bank digital currencies (CBDCs). It revealed that the administration has already developed policy objectives for a U.S. CBDC system, but further research on the possible technological foundation of that system is needed. Still, the intent seems pretty serious as the Treasury will lead an interagency working group with the participation of the Federal Reserve, the National Economic Council, the National Security Council and the Office of Science and Technology Policy.
The industry didn’t take the document well, as the policymakers’ focus on security and enforcement is all too visible. Kristin Smith, executive director of the U.S.-based Blockchain Association, called it “a missed opportunity to cement U.S. crypto leadership,” highlighting its heavy emphasis on risks, not opportunities, and the lack of substantive recommendations on the promotion of the crypto industry. Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said the policy recommendations seemed to be based on an “outdated and unbalanced understanding” of crypto, which could leave the details to be determined by other lawmakers or the next administration.
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