US Treasury Calls for Public Comments on Crypto Policy
- The request was made in compliance with President Biden’s executive order from March, which asked government agencies to develop policy recommendations for crypto.
- The public was given until 8 August to submit its comments on what could be the implications of mass crypto adoption for both individuals and businesses.
President Joe Biden delivering remarks to Department of Defense personnel, Washington DC, USA – February 10, 2021 BiksuTong/Shutterstock
The U.S. Treasury Department has called for public comments on the potential risks and benefits of cryptocurrencies for its upcoming digital asset policy, the agency said in a press release on 12 July.
According to the announcement, the request for public comments was made in compliance with President Joe Biden’s executive order from March, which directed the several U.S. agencies to develop policy recommendations for cryptocurrencies. The Treasury Department was ordered to take lead among the other agencies, and given 180 days to submit recommendations aimed at mitigating both systematic and consumer risk when it comes to crypto. Under Secretary of the Treasury for Domestic Finance, Nellie Liang, said in a statement:
“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams. The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”
The request for public comment first went live on 8 July, and gave interested parties until 8 August to submit comments on what they believe could be the implications of mass crypto adoption for both individuals and businesses. The U.S. public was also asked to “identify and describe” the general risks of digital assets in the current market conditions.
Last week, the Treasury Department provided President Biden with a regulatory framework for crypto, which was created in consultation with numerous government agencies. The framework aimed to encourage the development of digital assets, while respecting “core democratic values”, and ensure the stability of the global financial system.
- The White House published a fact sheet which summarized the reports from 9 federal agencies used to develop its framework and policies for digital assets.
- The reports not only called for more regulatory guidance for crypto companies, but also emphasized the importance of a potential U.S. Central Bank Digital Currency.
President-elect Joe Biden discusses the Affordable Care Act and his health care plans in Wilmington, 16 November 2020. Shutterstock
- Joe Biden’s 82nd executive order requires government agencies to coordinate the creation of a national framework for crypto, and explore the potential of U.S. CBDC.
- The Crypto Council for Innovation noted the order would likely lead to a much needed regulatory clarity around digital assets in the U.S..
- Aside from Andrew Yang, all Democratic Presidential candidates are keeping their stance on cryptocurrency private.
- The high rates of fraud in the crypto market are a clear sign of immaturity, one that is stopping this emerging fintech from becoming a major focus of U.S. political discussions.