The US Treasury has asked President Biden to work with international allies on regulating cryptocurrencies.
In a memorandum to the president, the US Treasury called upon the Biden administration to develop global standards for digital payments and central bank digital currencies (CBDC). The agency recommends that the US continue working with the G7 on crypto, concentrating on the flow of funds in private and public sectors while also tackling payment inefficiencies, CBDCs, and adoption of new technologies.
The report also encourages Washington to continue to develop a vision for digital assets that ensures financial stability and national security through strong regulations. Consumer and investor protection are at the heart of the calls, as authorities seek to tackle money laundering, terrorist financing, and sanctions evasion.
The memo comes as the EU put forward the first comprehensive piece of crypto regulation that is expected to be implemented within the next 18 months and could set a global standard.
What does this mean for me?
This report is the first of many such reports in the pipeline for the Biden administration. This work is being carried out at the request of President Biden’s executive order issued in March that sought to chart a way forward for American leadership in the crypto world.
For the crypto investor, this is positive news. Stronger legislation and consumer protection have been some of the sore points that have held back the widespread adoption of cryptos.