US Treasury Develops 'Framework' for International Crypto Regulation

The document is the first publication from the department to stem from President Biden's executive order on digital assets.

AccessTimeIconJul 7, 2022 at 8:08 p.m. UTC
Updated Jul 8, 2022 at 6:12 p.m. UTC

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

The U.S. Treasury Department published a fact sheet Thursday outlining how it could work with foreign regulators to address the cryptocurrency sector.

The fact sheet, which is the first report published by the department as a result of U.S. President Joe Biden's executive order on crypto, said the framework "is intended to ensure that ... America's core democratic values are respected," pointing to consumer, investor and business protection, the safety of the global financial system and interoperability.

According to the sheet, the framework's policy objectives also include reducing the potential use of crypto for illicit finance, promoting access to financial services, supporting technological advancement and "reinforc[ing] U.S. leadership in the global financial system."

"The United States must continue to work with international partners on standards for the development of digital payment architectures and CBDCs (central bank digital currencies) to reduce payment inefficiencies and ensure that any new payment systems are consistent with U.S. values and legal requirements," the fact sheet said.

This work should address those concerns, the document noted.

"Additionally, the United States will promote the adoption and implementation of international standards through bilateral and regional engagements. Across all engagements the United States will seek to ensure a coordinated message, limit duplication and encourage that work is maintained within its primary stakeholders," the document said.

To support this work, the Treasury Department said the U.S. should hold "engagements" and other types of forums, the fact sheet said.

The Justice Department published its response to Biden's executive order on digital assets last month.

UPDATE (July 7, 2022, 20:30 UTC): Adds additional information.

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Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

CoinDesk - Unknown

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

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