It’s rarely an either-or situation: With very few exceptions, elected officials and regulators want to do both. has generally come down to encouraging innovation versus protecting consumers. Regardless of the specifics, when it comes to regulating cryptocurrencies, the argument in the U.S. See also: Instant Payments, Stablecoins Sit Atop Treasury Dept’s Innovation Agendaįollowing that came fostering financial stability - mitigating cyber vulnerabilities and identifying and tracking emerging strategic risks. Then there was the extensive support innovative non-crypto instant payments systems like FedNow - The Clearing House’s RTP Network was also called out in one of the reports on “ The Future of Money and Payments ,” which also looked into stablecoins, a type of cryptocurrency whose benefits include instant settlement capabilities. The same applies to the Financial Literacy Education Commission (FLEC), which the Treasury Department told to “lead public-awareness efforts to help consumers understand the risks involved with digital assets,” as well as identify common frauds in the industry, and learn how to report it and other types of misconduct. In both cases, those phrases were emphasized with bold type. It encourages regulators including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to “aggressively pursue investigations and enforcement actions against unlawful practices in the digital assets space.”Īnd it orders the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) to “redouble their efforts to monitor consumer complaints and to enforce against unfair, deceptive, or abusive practices.” 16, and especially the Fact Sheet the White House put out announcing its goals for the first major responses to the president’s executive order calling for the creation of a legal framework for cryptocurrencies and other digital assets. It’s hard not to come to that conclusion when looking over the trio of reports it released on Sept. security laws.The Treasury Department is looking to rein in crypto. However, hours after the “Merge” SEC Chairman Gary Gensler warned that staking ETH for returns could bring the transactions under U.S. Ethereum argues, proof-of-stake will be far more environmentally friendly compared to the energy-hogging proof-of-work method which faces opposition from environment groups and lawmakers. Ethereum previously relied on a “proof-of-work” model where crypto miners could use their computers to perform complex calculations and validate transactions and earn ETH tokens. The update known as the “Merge” switches the blockchain and the token to a more environmentally friendly mode of operation called “proof-of-stake” where token holders can stake a portion of their ETH to validate transactions in exchange for a reward. TangentĮthereum, one of the world’s largest blockchain that powers Ether (ETH)-the second largest cryptocurrency in the world- completed an update to its system on Thursday. The value of Bitcoin currently stands at $19,864, down more than 1.5% in the past 24 hours and more than 70% from an all-time high of $68,990 last year. The collapse of the algorithmic stable coin TerraUSD in May caused a marketwide crypto crash. After explosive growth in the last two years, 2022 has been a volatile year for cryptocurrencies, with the values of popular tokens plummeting to less than a third of their all-time highs. Key Backgroundįriday’s announcement comes after Biden issued an executive order in March asking multiple federal agencies to examine the risks and opportunities of digital assets like cryptocurrencies and prepare reports based on their findings. The Treasury will work closely with financial institutions to “identify and mitigate cyber vulnerabilities” while other federal agencies like the Environmental Protection Agency and the Department of Energy will be tasked with examining the environmental impact of digital assets like cryptocurrencies. technological and financial leadership globally.” What To Watch For global competitiveness.” They added that the White House is seeking “continued engagement with allies and partners on these issues, which will reinforce U.S. to play a “leading role in the innovation and governance of the digital assets ecosystem at home and abroad and in a way that protects consumers, is consistent with our democratic values, and advances U.S. In a statement issued by the White House, National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan said the framework intends to position the U.S. In an effort to make the digital economy more equitable, the framework calls for the expanded adoption of “instant payment services” and the establishing regulatory policies for “non bank” payment platforms.
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