The United States Department of the Treasury will solicit comments from the public on digital assets, including their views on how regulations can address illicit uses of cryptocurrencies.
In a document to be published in the Federal Register on Tuesday, the US Treasury requested public comments on “illicit finance related to digital assets and national security risks, as well as the published action plan to mitigate risks” related to President Joe Biden’s executive order on cryptocurrencies. The department invited the public to share their views on regulatory obligations imposed by the United States government that are “no longer fit for purpose in relation to digital assets,” as well as to offer suggestions for alternative regulations that address the risks. and illicit finance vulnerabilities.
Illicit activities highlight the need for continued scrutiny of the use of digital assets, the extent to which technological innovation may impact such activities, and the exploration of opportunities to mitigate these risks through regulation, supervision, public-private engagement, surveillance and law enforcement,” Treasury said.
Specific, the US Treasury requested additional potential measures to address ransomware attacks, illicit funding risks from DeFi and cryptocurrency mixers, as well as how the government could coordinate anti-money laundering and countering the financing of terrorism policy at both the state and federal levels. The public has until November 3 to submit comments.
The request for public comment came after the White House published a regulatory framework on digital assets on September 16. Many in the industry, including cryptocurrency advocacy groups, criticized the administration for apparently focusing on the illicit uses of cryptocurrencies rather than their potential benefits. As part of the framework requirements, the Treasury Department will create a “Decentralized Finance Illicit Funding Risk Assessment” by February 2023.
The correct regulations will drive technological innovation and preserve crypto’s fundamental value propositions of freedom and empowerment while ensuring the right guardrails are in place for consumer protection and choice. (2/9)
— CZ Binance (@cz_binance) September 16, 2022
Biden’s executive order also prompted the Treasury Department and the Federal Reserve to explore political goals and for a US central bank-issued digital currency. On September 17, the Office of Science and Technology Policy published a report on 18 different design options for the possible implementation of a digital dollar in the United States.
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