In a fact sheet, the US Treasury Department lays out a framework for international engagement with regard to cryptocurrencies. On Thursday, this fact sheet was released.
It outlines how the United States intends to cooperate with several foreign regulators to address issues pertaining to the cryptocurrency industry.
The department’s first report, this fact sheet provides an overview of President Joe Biden’s executive order.
The framework respects the American democratic values because of how it was created. Additionally, it supports the goal of preserving the interoperability and safety of the global financial system as well as the protection of consumers, investors, and businesses.
The article also mentions the government’s involvement in bilateral partnerships and international fora regarding a variety of business-related issues.
The G7, which is concerned with digital payments and central bank digital currencies, includes the United States as a member (CBDCs). The United States collaborated with the G20 on a variety of issues, including cross-border payments.
More Information Regarding The Cryptocurrency Policy Goals
According to the fact sheet, reducing the use of cryptocurrency scams and other forms of illicit finance is one of the policy objectives of the framework.
By promoting advancement and strengthening leadership in the international financial system, it speaks of enhancing technology and promoting access to financial services.
Through its collaboration with the Financial Stability Board (FSB), the United States has delved further into the potential risks to financial stability associated with the adoption of cryptocurrencies.
The fact sheet further states,
To reduce payment inefficiencies and guarantee that any new payment systems are compliant with American values and legal requirements, the United States must continue to collaborate with international partners on standards for the development of digital payment architectures and CBDCs (central bank digital currencies).
Additionally, it states that
Through bilateral and regional engagements, the United States will also encourage the adoption and application of international standards. The United States will work to ensure a coordinated message across all engagements, avoid duplication, and promote continued work within its primary stakeholders.
Different Regulators Are Involved
The United States also supports nations that are implementing Financial Action Task Force (FATF) guidelines for cryptocurrencies or digital assets. The US is working to raise awareness about money laundering and ransomware in addition to being a member of the FATF and researching CBDC policies.
Also connected to the Organization for Economic Cooperation and Development is the United States (OECD). With the OECD, the US is having discussions about the risks, the best practices for crypto, and how to improve international tax compliance with regard to digital assets.
As part of its collaboration with the IMF, the United States is working on analytics and other forms of surveillance (IMF). In addition to collaborating with these regulators, the US is helping the World Bank and other multilateral development banks build services for lending and investing in digital assets.