Critics Say White House’s Latest Crypto Framework Lacks Clarity

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In response to US President Joe Biden's administration's announcement of a regulatory framework for digital assets, the crypto community and advocacy groups reacted, with many claiming the White House focused on cryptocurrency's disadvantages.

Crypto Community wary about the Framework 

On Twitter, both the co-founder of MicroStrategy, Michael Saylor and cryptocurrency analyst Dylan LeClair slammed the administration's attitude, alleging that it was exploiting environmental concerns as an excuse to expand its control over digital assets

According to Kristin Smith, executive director of the Blockchain Association in the United States, "such findings and summaries from the Biden administration's executive order on digital assets represent a squandered chance to entrench U.S. crypto leadership." The papers, which are meant to be a part of a larger government and stakeholder effort to improve regulation of crypto assets, "focus on hazards rather than opportunities and omit significant recommendations on how the United States should promote its developing crypto economy."

A framework for developing Crypto assets 

Nine reports have been presented to President Biden, according to the White House fact sheet, outlining a "clear framework for responsible digital asset creation and paving the way for further action at home and abroad." The nine papers are intended to suggest duties that government agencies must play to support American businesses in addition to advocating for orderly digital asset growth.

The findings urge government organizations to support innovation by fostering private sector R&D and assisting cutting-edge American businesses in gaining traction overseas. The White House's information sheet states that they also urge actions to reduce the negative risks, such as improved enforcement of current rules and the development of reasonable efficiency criteria for cryptocurrency mining.

The Treasury Department will submit a report by February 2023 on an "illicit finance risk assessment on decentralized finance," according to the Biden administration, which also pledged that federal agencies would "continue to expose and disrupt illicit actors and address the abuse of digital assets." 

While the task is far from over, reports on the creation of a comprehensive regulatory framework for crypto assets in the U.S. were among the first required since President Biden issued the order in March. The U.S Fed and Treasury Department will continue to study the effects of introducing a digital dollar. 

A report will be released in October by the Financial Stability Oversight Council regarding the risks digital assets pose to financial stability as well as the regulatory gaps related to them.