Crypto Market Brushes Aside US Treasury Framework for Digital Assets

    Valeria Bednarik 2022-07-08 09:48:20

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    An executive order signed by President Joe Biden in March outlined a "whole-of-government strategy to tackling the dangers and exploiting the potential advantages of digital assets, including crypto, and their underlying technology."


    The presidential order outlined a national strategy with an emphasis on six areas, including:


    protection for investors and consumers.

    monetary security.

    Illegal financing.

    US dominance over the world financial system and economic strength.

    monetary inclusion

    thoughtful innovation


    The executive order expounded on this as part of US financial system leadership,


    "Promote US leadership in economic competitiveness and technology to strengthen US leadership in the global financial system by ordering the Department of Commerce to work across the US Government in setting up a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies."


    The US Treasury Department this week released a framework addressing the Biden Executive Order's provisions on digital assets.

    Framework for International Engagement from the US Treasury

    A framework for international engagement on digital assets was released by the US Treasury Department on Thursday.


    The Treasury Department highlighted in the news release,


    "To eliminate payment inefficiencies and guarantee that any new payment systems are compliant with US principles and regulatory requirements, the United States must continue to cooperate with international partners on standards for the development of digital payment architectures and CBDCs."


    The news statement continued:


    "Such international work should continue to address the full spectrum of issues and challenges raised by digital assets, including financial stability; consumer and investor protection; business risks; and money laundering, terrorist financing, financing for proliferating weapons of mass destruction, sanction evasion, and other illicit activities."


    International organizations were emphasized by the US Treasury while speaking about engagements abroad. These organizations comprised, among others, the G7, the G20, and the International Monetary Fund (IMF).


    A follow-up to the framework would be released later and would not go into depth.

    Cryptocurrency Markets Ignore the Framework, Backed by the NASDAQ

    Investors in cryptocurrencies were able to disregard the framework due to a lack of specificity. Bitcoin (BTC) and the larger market were bolstered by a sudden increase in demand for riskier assets, which was sparked by a 2.28 percent surge on the NASDAQ.


    The crypto market was under more regulatory scrutiny at the beginning of the year. The necessity for an international regulatory framework for digital assets has been emphasized by the UK, the US, and organizations such as the IMF.


    The Ukraine conflict has compelled politicians to act more quickly. Even while certain countries are moving closer to domestic regulation of digital assets, it could take some time before a universal framework is established.

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