Responses to White House Executive Order on Crypto Regs Due Next Week
The crypto world will get a preview of US regulations and the regulatory framework that could shake out starting next week. Agency responses from the White House’s March 9 executive order to various cabinets and agencies for implementing “digital asset” policy are due. The EO addressed hot-button issues ranging from consumer protection and national security to the creation of CBDCs.
Here’s a rundown of what’s coming September 6.
· The Treasury: A report on a central bank digital currency, or CBDC, with a particular interest in cooperation with the Federal Reserve. CBDCs have become a surprisingly contentious topic in Washington since the release of the Executive Order.
· The Office of Science and Technology: A technical analysis of the difficulty and likelihood of implementing a CBDC.
· The Justice Department: A legal assessment of whether Congress needs to put out new law in order to issue a CBDC — which Republicans have adamantly insisted is the case.
· The Treasury and the major markets and consumer protections regulators: a report on the risks and rewards of digital assets in markets and payments.
· Office of Science and Technology Policy: a report on crypto’s role in energy transitions across timespans. The issue is controversial, with crypto critics frequently pointing to proof-of-work mining as an inexcusable waste of electricity. Crypto stakeholders say PoW can monetize the development of renewable energy sources.
· The Justice Department, with the help of the Treasury and the Department of Homeland Security: The role of law enforcement agencies in “detecting, investigating, and prosecuting criminal activity related to digital assets.” The Department of Justice’s FBI, the Treasury’s IRS-Criminal Investigations, and the Department of Homeland Security have spearheaded the bulk of major cryptocurrency investigations federally.
· Commerce Department: A framework for enhancing United States economic competitiveness in, and leveraging of, digital asset technologies.
This could be a watershed moment for the industry.