The United States Treasury Department delivered a crypto framework As directed in the Executive Order (EO), issued in March, to President Joe Biden
According to the Treasury Department, the framework that was sent to President Obama was developed in consultation with Secretary of State, Secretary of Commerce, Administrator of U.S. Agency for International Development, USAID, and other relevant agencies.
According to Treasury, the framework asks the United States core allies to cooperate in creating international standards for crypto asset regulation.
Harmonizing Crypto Regulations across Borders
The Treasury outlines the need to harmonize methods that can help to nip the board regulations in fighting crimes emanating out of the crypto ecosystem, which often spills over to foreign jurisdictions.
“Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial stability and the protection of consumers, investors, businesses, and markets,” the framework reads, adding, “Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenge the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering.”
Additionally, the Treasury is asking for the US leadership in the negotiations to develop the frameworks for Central Bank Digital Currencies.
“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,” the Treasury noted.
While the United States is currently focusing its efforts on the new crypto industry, the European Union has already taken the lead. In just a week, the EU has agreed to a comprehensive framework for Markets in Crypto Assets. Implementation is expected in the next few years.
While it is not clear at this time how the US and EU will harmonize future strategies, more work has been done on CBDCs and the collaboration may prove to be more effective.
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