The U.S. Treasury Department has called on the public to provide feedback on the role of digital assets in facilitating illicit finance and how regulators can reduce the associated risks.
September 19, Ministry of Finance announced Public feedback will guide prospects in drafting the regulatory bill required by Biden’s executive order on cryptocurrencies.
On March 9, 2022, President Joe Biden announced, presidential decree It directed all federal agencies to draft cryptocurrency regulations that address six key issues, including consumer protection, mitigating illicit finance, and promoting U.S. leadership in the global financial system.
The executive order noted that the use of digital assets has made it easier for malicious individuals to engage in financial crimes related to money laundering, terrorism, fraud, and theft schemes.
The Treasury Department said it has worked with several government agencies to develop an action plan to mitigate illegal activity. However, regulators are open to working with the public to develop a coordinated action plan.
Through this Request for Comment (RFC), the Treasury Department is seeking public input to understand its views on the emerging risks and the actions the U.S. Government and Treasury Department should take to mitigate them.
Interested members of the public are invited to comment on questions regarding
- how cryptocurrencies may be used for illicit finance and the risks they pose;
- How the U.S. government can prevent criminals from misusing crypto assets.
- How the Treasury can partner with the private sector to combat illicit finance.
The Treasury Department also asked how blockchain analytics tools could help improve AML/CFT compliance processes and how illicit risks could be reduced if a US CBDC were deployed. .
U.S. move to regulate cryptocurrencies
US federal agencies, including the Treasury Department, are preparing to provide a coordinated action plan to regulate the cryptocurrency industry.
On September 17th, the White House Framework Address crypto regulation, crypto fraud, and the feasibility of developing a digital dollar.
An ongoing debate in the U.S. Congress is that the Commodity Futures Trading Commission (CFTC) regulate Especially virtual currency Bitcoin When Ethereum.
SEC Chairman Gary Gensler Supported He added that it would give the CFTC greater control over the crypto market “unless it takes power away from the SEC.”