The U.S. treasury department revealed the submission of the framework for digital assets to President Joe Biden for an interagency approach and international engagement.Â
The Framework outlines the advantages and risks associated with digital assets such as crypto and others. The proposed framework was also mentioned in the President’s Executive Order on Ensuring Responsible Development of Digital Assets earlier on March 9.
The executive order directs the administration to promote the development of digital assets and Central Bank Digital Currency (CBDC) with the conversion of legality and perseverance of democratic value.
As technological-based financial innovations are more likely to have cross-border settlements, it requires strong international cooperation with high regulatory standards.
Also Read: Joe Biden Signed Executive Order to Assess Digital Assets
There are various objectives in the framework directed from the principal policy objectives of the United States. It implies that the U.S. authority wants to highlight the risk associated with the investment by investors, businesses, and others.
The framework reflects the international aspects for authorities to work on including consumer protection, mitigation of illicit finance and national security risks, reinforcement of U.S. leadership at the global level, and others.
The U.S. authorities are actively working on the development and adoption of international standards on digital assets. At some international stages like the G7 Committee and FATF Group, the U.S took some significant steps to bring strong cooperation for international regulation on digital assets.
U.S. authorities are also assessing the standards for the efficient development of digital payment systems and CBDCs.
