US fact sheet on global crypto-regulation; Here’s what we know
The US Treasury Department has published a fact sheet that sets out a framework for international engagement related to crypto. This fact sheet was published on Thursday.
It describes how the United States plans to work with several foreign regulators to address issues related to the crypto industry.
This fact sheet is the first report published by the department, and it describes President Joe Biden’s executive order.
The framework is designed in such a way that it respects the democratic values in America. It is also in line with the goal of protecting consumers, investors, businesses and maintaining the security of the global financial system and interoperability.
The publication also mentions that the government has been in international forums and participated in bilateral partnerships on many issues around the industry.
The United States has been involved in the G7, which is concerned with digital payments and the central banks’ digital currencies (CBDC). The United States also worked with the G20, which among other things was related to cross-border payments.
More about the political goals of cryptocurrency
The fact sheet states that the framework’s political goals are concerned with reducing the use of crypto fraud and other illegal finances.
It talks about promoting access to financial services and uplifting technology by facilitating progress and strengthening leadership in the global financial system.
The USA works with the Financial Stability Board (FSB), through this partnership the USA has delved deeper into potential financial stability risks associated with the use of cryptocurrency.
The fact sheet also states that
The US must continue to work with international partners on standards for the development of digital payment architectures and CBDCs (digital currencies from central banks) to reduce payment inefficiency and ensure that any new payment systems comply with US values and legal requirements.
In addition, it is mentioned,
In addition, the United States will promote the adoption and implementation of international standards through bilateral and regional commitments. Across all engagements, the United States will seek to ensure a coordinated message, limit duplication, and encourage work to be maintained within its primary stakeholders.
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Various regulators involved
The United States also supports countries that adopt Financial Action Task Force (FATF) standards for crypto or digital assets. Along with being part of the FATF, the United States is also striving to raise awareness about ransomware and money laundering in addition to looking more closely at the CBDC’s guidelines.
The United States is also in contact with the Organization for Economic Co-operation and Development (OECD). With the OECD, the United States is in discussion about the risks, the recommended way and best practices for crypto and also for improving global tax compliance around digital assets.
Analyzes and other monitoring work are underway while the United States cooperates with the International Monetary Fund (IMF). In addition to working with these regulators, the United States also helps the World Bank and other multilateral development banks design digital asset-based investments and lending services.
Related reading | Why the US Treasury Department published a framework for international cryptocurrency regulation
