The United States Treasury Department posted a review on Monday, September 19, calling for public comment on various crypto-related issues. The focus is both on crypto-related crime and on ways to reduce said illicit behavior without stifling progress.
Treasury calls for public comment on digital asset regulations
After the White House revealed its first-ever framework on digital asset regulation, the Treasury Department ramped up its crypto-related activity. Already on Friday, the government agency published a series of reports regarding announcements. Today, the Treasury released its Request for Public Comment that specifically names Biden’s “Ensuring Responsible Development of Digital Assets.” Executive Decree.
This notice invites interested members of the public to provide comments pursuant to Executive Order of March 9, 2022, “Ensuring the Responsible Development of Digital Assets.” In particular, the Department is seeking feedback on the illicit finance and national security risks related to digital assets, as well as the publicly available action plan to mitigate the risks.
Judging from the specific questions posed in the notice, the Treasury is particularly interested in how it can help reduce illicit activities related to digital assets and how it can ensure uniform application of regulations to all levels. They also seem very interested in implementing consumer access to safe and affordable financial services and promoting innovation in digital assets.
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The struggle to regulate crypto
This year, the government has taken a lot of interest in digital assets. Although the SEC has been the most noted – and perhaps the most criticized – for its aggressive actions, it is far from the only agency taking action related to crypto.
Last week, CFTC Chairman Rostin Behnam spoke before the US Senate Committee on Agriculture, Nutrition and Forestry to demand more authority over the crypto industry for his agency. Like the SEC, this agency has taken active steps to combat illicit behavior related to digital assets. Currently, the biggest move the CFTC is handling is the $1.7 billion case against Mirror Trading.
Nor is the Treasury the only government agency to solicit comments from outside sources. While today’s advisory was directed to “interested members of the public”, Congress took a somewhat different approach last week. The House Committee on Oversight and Reform has sent five letters to various crypto firms asking them both what they are doing to prevent crime related to digital assets and how they can contribute to these efforts.
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About the Author
Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.