The U.S. Treasury Department will call for comments from the public on digital assets, including their views on how regulations can address the illegal use of cryptocurrencies.
In a set of documents to be published in the Federal Register on Tuesday, the U.S. Treasury Department asked for public comment on “illicit financing related to digital assets and national security risks as well as an action plan to mitigate risks.” The event involved President Joe Biden and his Executive Order on cryptocurrencies from March. The department invited the public to share its stance on regulations the U.S. government has set “ no longer relevant” as well as to offer proposals for alternative regulations to address illegal financial risks and vulnerabilities.
“Illegal activities underscore the need for ongoing monitoring of the use of digital assets, the impact of technological innovation on such activities, and options for mitigating those risks through regulation, monitoring, public-private engagement, surveillance, and law enforcement, ” the Treasury said.
Specifically, the US Treasury Department has asked for additional options that it can implement in relation to tackling ransomware attacks, illegal financial risks of cryptocurrency mixers and DeFi, as well as the coordination of Anti-Money Laundering and Counter-Terrorism Financing policies at the state and federal levels. The public can submit feedback through Nov. 3.
A request for public comment follows the White House’s release of its regulation on digital assets on Sept. 16. Many in the space, including pro-crypto groups have criticized the administration for focusing too much on the illegal use of cryptocurrency rather than its potential benefits. As part of the framework’s requirements, the U.S. Treasury will create an “illegal financial risk assessment for decentralized finance” in February 2023.
It’s great to see the US moving towards a proposed crypto framework. Getting it right will help protect consumers, markets and spark responsible innovation. (1/9)
— CZ 🔶 Binance (@cz_binance) September 16, 2022
Biden’s executive order also asked the Treasury Department and the Federal Reserve to set policy targets on U.S. central bank digital currencies (CBDCs). On September 17, the Office of Science and Technology Policy released a report on 18 different design options to potentially deploy the digital dollar in the United States.