Six months after the Executive Order was signed, the first publication for the responsible development of digital assets has come up. These also include the suggestions from various government departments.
No new laws have been framed but the government has underlined how cryptocurrency within the country will function. Parts of the regulations include how consumers, investors and businesses will be protected and how they will be provided access to safe and affordable financial services. The functions of the cryptocurrency are supposed to encourage financial stability, provide responsible innovation to establish the current financial leadership capable of global competition, help fight illegal finance and explore the possibility of central bank digital currency (CBDC).
The laws have permitted regulating bodies to assess and exchange consumer complaints and enforce the law accordingly. The Securities and Exchange Commission and Commodity Futures Trading Commission have been given the charge of securing these assurances by the government.
The US Treasury would analyze and exchange data with various financial bodies to stop cyber threats. The Treasury was also given the power to coordinate and collaborate with regulatory authorities to help guide crypto companies.
Through the Financial Stability Board (FSB) and the Organization for Economic Cooperation and Development (OECD), both international bodies, the US would engage with its allies.
The assessment of the dangers of illegal financing due to decentralized finance will be completed by February 2023. The Non-fungible tokens (NFTs) will also be evaluated by July 2023.
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In relation to Bank Secrecy Act, rules against tip-offs and laws against unlicensed money transmission will apply to digital asset services providers like NFT platforms and digital asset exchanges. Biden will have to come up with a decision and then, ask Congress for its views.
The factsheet states that there are opportunities to ensure blockchain technology helps reduce carbon footprints and spikes environmental justice. The sheet also added that the President would assess whether to seek Congressional arbitration to amend the Bank Secrecy Act laws, anti-tip-off laws and laws against unauthorized money transmissions in relation to digital asset service entities, exchanges and NFT platforms.
The White House Office of Science and Technology also pointed out that crypto miners need to reduce greenhouse gas emissions and Congress may look to limit high energy intensity consensus mechanisms.
The report stated that a Central Bank Digital Currency (CBDC) is planned and pointed out the several benefits for technology, the economy, security and individual freedom.
When did Bitcoin start functioning?
In 2008, it was invented, and in 2009, it began to be used as open-source software.
How does Bitcoin function?
Bitcoin uses the SHA-256 hashing algorithm to encrypt the data stored in the blocks on the blockchain.
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