The White House on Friday released a comprehensive framework that offers recommendations for regulating cryptocurrencies after a six-month review of digital assets.
The report follows a March executive order from President Biden that directed federal agencies to continue crypto research.
New Biden administration framework calls for more private innovation in the digital asset space while asking both the Securities and Exchange Commission and the Commodity Future Trading Commission to crack down harder on theft and crime across the sector.
It also comes after May’s crypto crash wiped out $600 billion from crypto investments, as the sector is still under pressure from Federal Reserve interest rate hikes and persistent inflation.
The report also touched on the Federal Reserve’s plan for a central bank digital currency, which the White House said “has the potential to deliver significant benefits.” The report warns that a CBDC still has immense consequences, including “CBDC runs in times of stress.”
Meanwhile, the White House has signaled that Congress may need to get involved in tougher sanctions to crack down on illicit activity.
“The President will consider whether to ask Congress to amend the Bank Secrecy Act, anti-whistleblower laws, and laws against unlicensed money transmission to explicitly apply to digital asset service providers. , including digital asset exchanges and non-fungible token (NFT) platforms,” a White House briefing said.
The administration is also considering asking Congress to toughen penalties for transmitting money without a license and changing laws to facilitate the Justice Department’s ability to prosecute crimes related to digital assets.