The White House unveils a concept for regulating the U.S. crypto industry

On Friday, September 16, the White House unveiled a concept for regulating the cryptocurrency industry. Earlier, U.S. President Joe Biden issued an executive order, directing federal agencies to coordinate efforts in overseeing the industry.

According to the press release, government agencies urged research focused on privacy and user rights protections, energy consumption, as well as the advantages and risks of central bank digital currency (CBDC).

The White House has already received a number of reports, including from Управления по научно-технической политике, Минюста и Министерства торговли США.

Today, Treasury published three reports on “Ensuring Responsible Development of Digital Assets”. The reports address the future of money and payment systems, consumer and investor protection, and illicit finance risks. https://t.co/IPWC71TOhl

— Treasury Department (@USTreasury) September 16, 2022

The concept envisions a range of initiatives, including amendments to the Bank Secrecy Act that would tighten enforcement against providers of services related to digital assets.

The Treasury Department was instructed to complete by July 2023 an assessment of risks associated with DeFi sectors. SEC and CFTC also urged heightened attention to the area.

Binance CEO Changpeng Zhao said that a nationwide U.S. approach to crypto oversight would provide the coherence and clarity of regulation necessary for the industry’s successful development.

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

«It’s encouraging to see the U.S. moving toward the proposed regulatory framework for the crypto industry. The right approach will help protect consumers and markets, and foster responsible innovation,» he wrote.

According to Zhao, the administration’s actions will remove fragmentation in industry oversight and inject clarity into regulation. He emphasized that the program contains specific provisions on international cooperation in the context of enforcement.

Not all members of the community reacted positively to the concept and the reports associated with it. For example, MicroStrategy’s executive chairman Michael Saylor said that report by the Office of Science and Technology Policy on the climate and energy risks of digital assets “is full of misinformation.”

The latest White House Crypto Climate & Energy Report is full of misinformation generated and promulgated by unscrupulous crypto promoters in order to undermine #Bitcoin and champion their own interests. @nic__carter expertly debunks the propaganda.https://t.co/kW7sictekQ

— Michael Saylor⚡️ (@saylor) September 16, 2022

Saylor also noted that Castle Island Ventures’ general partner Nick Carter “expertly exposed this propaganda” in his Medium article.

Messari founder Ryan Selkis hinted that Biden is too old to understand the value of cryptocurrencies and blockchain technology.

This is what everyone is thinking, but no one is saying.

We need a new, younger president, and should be looking for techno-progressives and pragmatic conservatives who will champion common sense solutions in this realm.

Everything else until then is window dressing.

— Ryan Selkis 🥷 (@twobitidiot) September 16, 2022

«My reaction to the White House’s concept is this — in 2024 we need a new president, and we should court candidates who aren’t elderly, who stand a chance of understanding how important these technologies are for the future of the U.S. economy,» he wrote.

The host of The Wolf Of All Streets podcast Scott Melker called the publication a “damn disgrace.” He said that, under the guise of consumer protection, the government is attempting to push through the FedNow system, which is also mentioned in the press release.

The White House’s proposed framework is a fucking disgrace.

— Clear attack on proof-of-work by implying they will set environmental standards for mining.
— Pushing FedNow over crypto
— Framing everything as a potential scam or threat
— Harping on volatility and consumer risk

— The Wolf Of All Streets (@scottmelker) September 16, 2022

In July 2022, Senator Elizabeth Warren, a member of the Senate Banking Committee, said that should take a tougher stance toward the cryptocurrency industry.

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