Photo by Nik Shuliahin via Unsplash.

The United States Department of the Treasury asked the public to submit comments on digital assets, including cryptocurrencies.

The Treasury made room for US citizens to comment on the illicit uses of cryptocurrencies and, specifically, on the proposed action plan.

The Department asked people to suggest additional measures that authorities could take to address illicit uses of cryptocurrencies and decentralized finance (DeFi), in addition to coordinating its anti-money laundering (AML) and anti-terrorist financing (CFT) policy.

Tighter regulation for cryptocurrencies

The Treasury further added:

“Illicit activities highlight the need for an ongoing scrutiny of the use of digital assets, the extent of the impact of technological innovation on such activities, and the exploration of opportunities to mitigate these risks through regulation, oversight, public and private engagement, oversight and enforcement. of law.”

The Executive Order entitled “Ensuring the Responsible Development of Digital Assets” was issued on March 9 by US President Joe Biden.

Know more: Biden government suggests strict regulation and oversight of cryptocurrencies

That order outlined the government’s objectives in relation to the regulation of digital assets, which include:

  • I – consumer and business protection;
  • II – safeguarding financial stability;
  • III – mitigation of illegal activities;
  • IV – reinforcement of North American financial leadership;
  • V – promotion of safe and accessible financial services;
  • VI – support for technologies for the development of digital assets.

Following this March order, the White House recently released its first comprehensive framework for responsible digital asset development on September 16.

It encourages regulatory bodies such as the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to aggressively investigate and take action against illegal practices related to cryptocurrencies.

Industry reviews

Top industry insiders criticized the government’s approach to cryptocurrencies and other digital assets.

The Blockchain Association tweeted that the administration’s order is a missed opportunity to cement American leadership in the cryptocurrency industry. She said the reports focus more on the risks presented than their benefits.

The Crypto Council for Innovation tweeted that the order follows an outdated and unbalanced understanding of technology. “Regulation by application is not regulatory clarity,” he added.

It was after these criticisms that the Treasury decided to invite the public to comment on its approach, the public can submit comments until November 3, 2022.

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