New directives are aimed at developing financial services infrastructure, simplifying cross-border payments and addressing fraud
The White House has introduced official guidelines on crypto regulation, reports CNBC. The new set of rules has been in the making for the last six months after Joe Biden issued an executive order in March, when the President called on federal agencies to study risks and advantages of digital assets.
One of the key ideas is to confront illegal activity in virtual assets space. In particular, the President could request Congress to amend the Bank Secrecy Act, anti-tip-off statutes, and laws against unlicensed money transfers that will apply specifically to digital assets providers.
The White House also mentions the potential of Central Bank digital currencies (CBDC). The framework states that digital dollar could make the US payment system more effective and lay the foundation for future technological innovations, allowing for faster cross-border remittances.
The U.S. government has underlined that digital money, and stable-coins specifically, need to be regulated. Otherwise they could lead to disruptive patterns such as the collapse of TerraUSD in May that led to a series of insolvencies, wiping out $600 billion in wealth, according to the White House.