US Treasury calls on Biden to work with G7, key allies to regulate crypto

A new US Treasury initiative calls on President Biden to work with international partners on cryptocurrency regulation.

In a memo to the presidentthe U.S. Treasury — in consultation with the Secretary of State and Secretary of Commerce — aims to develop global standards for digital payments and central bank digital currencies (CBDCs) to protect consumers and businesses and ensure financial stability.

“The United States must continue to work with international partners on standards for the development of digital payment architectures and CBDCs to reduce payment inefficiencies and ensure that any new payment system is consistent with American values ​​and legal requirements,” the report said.

The agencies recommend that the US continue to work with the G7 on crypto, focusing on the movement of money in the private and public sectors, reducing payment inefficiencies, CBDCs and the adoption of new technologies.

They also encourage the United States to work with key allies to develop a vision for digital assets that ensures financial stability and national security through strong regulation. This includes consumer and investor protection, protection against arbitrage opportunities, money laundering, terrorist financing and sanctions evasion.

U.S. Treasury Secretary Janet Yellen testifies during a House Ways and Means Committee hearing on President Biden’s proposed U.S. budget for 2023, on Capitol Hill in Washington, U.S. June 8, 2022 REUTERS/Jonathan Ernst

Another recommendation in the memorandum is that the United States work with the Organization for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF), and the G20 to engage with other major economies to make more transparent and secure cross-border payments using crypto. By working with foreign counterparts, the agencies said, the rules should strengthen American leadership in the global financial system.

The report is the first of many to come from the Biden administration under the direction of the presidential decree published in March on how to regulate cryptocurrencies.

With respect to CBDCs, the agencies recommended that the United States explore opportunities to experiment with other countries on technologies, which would provide opportunities for American companies to lead the development of infrastructure and technologies to CBDCs around the world and at home, if one were to pursue one. .

This report comes as the European Union has introduced the first comprehensive piece of crypto regulation that is expected to be implemented within the next 18 months and could set a global standard. Back in the United States, the senses. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced comprehensive legislation to regulate crypto in June.

Jennifer Schonberger covers cryptocurrencies and Yahoo Finance politics. Follow her on @Jenniferisms.

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