Crypto regulation: U.S. government wants to strengthen the law in the digital asset sector

The White House said Friday that the Biden administration must redouble its efforts to strengthen the law in the digital asset sector and identify gaps in crypto regulation.

As a reminder, in March the White House announced that U.S. President Biden will sign an executive order to ensure responsible innovation in digital assets, including crypto.

The regulation aims to address the risks and harness the potential benefits of digital assets and their underlying technology, identifying six key priorities:

• consumer and investor protection,
• financial stability,
• illicit financing,
• U.S. leadership in the global financial system, and economic competitiveness,
• financial inclusion and responsible innovation.

A few months later, the White House made another announcement. A U.S. government action that follows an executive order signed this year by U.S. President Joe Biden on ensuring responsible development of digital assets, recalls Reuters.

Regulators such as the Securities & Exchange Commission and the Commodity Futures Trading Commission (CFTC) are being urged to issue guidelines and rules regarding the risks associated with the crypto ecosystem, including its use for laundering or fraud.

The White House also indicated that Joe Biden would consider asking Congress to amend the Bank Secrecy Act to apply to digital asset service providers, including crypto-exchanges and non-fungible token platforms (NFTs).

The U.S. Department of Justice, meanwhile, said it will create a digital asset coordination group overseeing 150 federal prosecutors to pursue crypto-related crimes.

The U.S. Treasury Department, meanwhile, will lead a group of government agencies to study the potential of a central bank-issued digital currency (CBDC), though nothing is assured on that front.