As outlined in the reports released today, the Administration plans to take the following additional steps: Since taking office, the Biden-Harris Administration and independent regulators have worked to protect consumers and ensure fair play in digital assets markets by issuing guidance, increasing enforcement resources, and aggressively pursuing fraudulent actors. Outright fraud, scams, and theft in digital asset markets are on the rise: according to FBI statistics, reported monetary losses from digital asset scams were nearly 600 percent higher in 2021 than the year before. One study found that almost a quarter of digital coin offerings had disclosure or transparency problems-like plagiarized documents or false promises of guaranteed returns. Still sellers commonly mislead consumers about digital assets’ features and expected returns, and non-compliance with applicable laws and regulations remains widespread. Prices of these assets can be highly volatile: the current global market capitalization of cryptocurrencies is approximately one-third of its November 2021 peak. Protecting Consumers, Investors, and Businessesĭigital assets pose meaningful risks for consumers, investors, and businesses. Central Bank Digital Currency (CBDC), the reports encourage the Federal Reserve to continue its ongoing CBDC research, experimentation, and evaluation and call for the creation of a Treasury-led interagency working group to support the Federal Reserve’s efforts. Recognizing the potential benefits and risks of a U.S. At the same time, they call for measures to mitigate the downside risks, like increased enforcement of existing laws and the creation of commonsense efficiency standards for cryptocurrency mining. The reports call on agencies to promote innovation by kickstarting private-sector research and development and helping cutting-edge U.S. Together, they articulate a clear framework for responsible digital asset development and pave the way for further action at home and abroad. The nine reports submitted to the President to date, consistent with the EO’s deadlines, reflect the input and expertise of diverse stakeholders across government, industry, academia, and civil society. leadership in the global financial system and economic competitiveness financial inclusion and responsible innovation. Over the past six months, agencies across the government have worked together to develop frameworks and policy recommendations that advance the six key priorities identified in the EO: consumer and investor protection promoting financial stability countering illicit finance U.S. President Biden’s March 9 Executive Order (EO) on Ensuring Responsible Development of Digital Assets outlined the first whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. The May crash of a so-called stablecoin and the subsequent wave of insolvencies wiped out over $600 billion of investor and consumer funds. But they also pose real risks as evidenced by recent events in crypto markets. leadership in the global financial system and remain at the technological frontier. Digital assets present potential opportunities to reinforce U.S. Millions of people globally, including 16% of adult Americans, have purchased digital assets-which reached a market capitalization of $3 trillion globally last November. The digital assets market has grown significantly in recent years. Get Involved Show submenu for “Get Involved””įollowing the President’s Executive Order, New Reports Outline Recommendations to Protect Consumers, Investors, Businesses, Financial Stability, National Security, and the Environment.The White House Show submenu for “The White House””.Office of the United States Trade Representative. Office of Science and Technology Policy.Executive Offices Show submenu for “Executive Offices””.Administration Show submenu for “Administration””.
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