Crypto Market Brushes Aside US Treasury Framework for Digital Assets
- On Thursday, the US Treasury Department responded to President Joe Biden’s executive order on digital assets.
- The focus was on a framework for the international engagement of digital assets, addressing part of the executive order.
- There was little response from the crypto market, with a bullish session seeing the total crypto market cap rise by $35 billion to $936 billion.
In March, President Joe Biden issued an Executive Order outlining a ‘whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets, including crypto, and their underlying technology.’
The executive order laid out a national policy, focusing on six priorities, these being:
- Consumer and investor protection.
- Financial stability.
- Illicit finance.
- US leadership in the global financial system and economic competitiveness.
- Financial inclusion.
- Responsible innovation.
As part of the US leadership in the global financial system, the executive order elaborated,
“Promote US leadership in technology and economic competitiveness to reinforce US leadership in the global financial system by directing the Department of Commerce to work across the US Government in establishing a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies.”
This week, the US Treasury Department delivered a framework addressing components of the Biden Executive Order on digital assets.
US Treasury Delivers Framework for International Engagement
On Thursday, the US Treasury Department issued a framework for the international engagement on digital assets.
In the press release, the Treasury Department noted,
“The United States must continue to work with international partners on standards for the development of digital payment architectures and CBDCs to reduce payment inefficiencies and ensure that any new payment systems are consistent with US values and legal requirements.”
The press release went on to say,
“Such international work should continue to address the full spectrum of issues and challenges raised by digital assets, including financial stability; consumer and investor protection. and business risks; and money laundering, terrorist financing, proliferation financing, sanctions evasion, and other illicit activities.”
Regarding international engagements, the US Treasury highlighted international organizations. These included the G7, the G20, and the International Monetary Fund (IMF), among others.
However, the framework did not go into detail, with a follow-up to the framework to come later.
At the turn of the year, increased regulatory scrutiny weighed on the crypto market. The UK, the US, and agencies including the IMF had highlighted the need for a global regulatory framework for digital assets.
The war in Ukraine has forced lawmakers to move more swiftly. While some jurisdictions are making progress toward the domestic regulation of digital assets, it may take some time to deliver a global framework.