DC Blockchain Summit: US government emphasizes importance of privacy and accountability when using digital assets
The cryptocurrency industry is constantly evolving and expanding, making it critical to understand the perspectives of US government officials who shape the legal landscape.
At the DC Blockchain Summit, Sanjeev Bhasker, US Digital Currency Counsel at the Digital Currency Initiative of DOJ’s Money Laundering and Asset Recovery Section/NCET, Matt Cronin, Director of National Cybersecurity at the Office of the National Cyber Director, and Sandra Lee, Assistant Asst. secretary of the Financial Stability Oversight Council at the Treasury Department, provided unique perspectives on the legal issues and challenges facing the cryptocurrency industry.
According to Bhasker, DOJ digital currency initiatives have focused on prosecuting cases involving digital assets, training law enforcement on crypto-technology, policy work and private sector engagement. “We have decided that we want to encourage dialogue with industry when it comes to sharing information. Also, being able to develop points of contact to understand who you can contact with the DOJ if you have questions about a particular area and then who will be contacted in your respective company when it comes to understanding the new technologies, he said.
Bhasker referred to various government reports dealing with digital assets developed in response to a statement issued by the Biden administration last year, which called for action on topics such as international cooperation, uniform regulations and legal arbitrage in relation to digital assets. Bhasker stated that the goal was to create a consistent, universal playing field and that the focus was on digital assets as a whole, both nationally and internationally.
Cronin said it is crucial to shift the burden of cyber security “to those who are best able to carry it.” He emphasized the importance of investing in greater cyber security and greater robustness in the long term where cyber security is a fundamental principle.
Lee said the mission of their work is to address potential risks to America’s economic security. “We all come together to share information, promote coordination, and also do consensus building on the issues that are relevant to us on financial stability,” she said.
Regarding the executive order on digital assets and financial stability, Lee said reports found that “digital assets could pose a risk to financial stability if their interconnections with the traditional financial system or their scale were to grow without compliance with appropriate regulation or parents with appropriate regulations.”
Cronin said the White House is very much on top of the issues surrounding digital assets. “The agency is very focused on this issue and we are listening to what the private sector has to say, both in this committee and outside of it as well,” he said.
Bhasker emphasized that sharing, teaching and listening are fundamental to developing good compliance in the crypto space. Lee said, “Both in industry and academia, nonprofits and the technology sector, we found that outreach was incredibly important and useful” for the development of reports.
Cronin stated that the goal for the White House is that when this new technology hits primetime and mass adoption and goes worldwide, it is adopted in a way that is consistent “with basic human values, basic human rights and the way we see ourselves as Americans, promoting rights that include privacy and accountability.”
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