US Treasury intends to consult public if crypto-related regulations are ‘no longer fit for purpose’ | The Financial Express

US Treasury intends to consult public if crypto-related regulations are ‘no longer fit for purpose’

According to the executive order, the use of digital assets has given criminals the power to quickly commit financial crimes like money laundering.

US Treasury intends to consult public if crypto-related regulations are ‘no longer fit for purpose’
The White House unveiled its framework on September 17 to address cryptocurrency regulation, crypto fraud, and the viability of creating a digital dollar.

The public has been asked for input on how digital assets are used to facilitate illegal funding and how the regulator may reduce the dangers involved by the U.S. Department of the Treasury, as reported by Cryptoslate.

The Treasury indicated on September 19 that the public’s comments will inform its viewpoint as it draughts a regulatory bill in response to Biden’s Executive Order on cryptocurrency.

President Joe Biden issued an executive order on March 9, 2022, directing all federal agencies to create cryptocurrency rules that address six important issues, including as consumer protection, reducing criminal finance, and advancing American leadership in the international financial system.

According to the executive order, the use of digital assets has given criminals the power to quickly commit financial crimes such as money laundering, support for terrorism, fraud, and theft schemes.

The Treasury claimed that it has collaborated with a number of government organisations to create an action plan that aims to reduce illegal activity. The agency is willing to work with the general public to create a coordinated action plan, though.

The Treasury is seeking feedback from the public through this request for comments (RFC) to understand its perspective on the growing dangers and what steps the U.S. Government and Treasury Department should take to mitigate them.

The White House unveiled its framework on September 17 to address cryptocurrency regulation, crypto fraud, and the viability of creating a digital dollar.

The Commodity Futures Trading Commission (CFTC) may soon be able to regulate cryptocurrencies, primarily Bitcoin and Ethereum, according to ongoing discussions in the US Congress.

Gary Gensler, the chairman of the SEC, expressed support for the proposal and said he would grant the CFTC more authority over the cryptocurrency market “so long as it does not take away jurisdiction from the SEC.”

(With insights from Cointelegraph)

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First published on: 20-09-2022 at 11:22 IST