In recent years, the market for digital assets has expanded rapidly. Digital assets have been purchased by millions of people worldwide, including 16% of adult Americans, and their market capitalization hit $3 trillion in November of last year.
Now where the widely purchased and opted digital assets play a vital role in benefiting the global financial system, the drawbacks as unfortunate events in the crypto market have also impacted how the investors see these digital assets.
However, with the first government-wide strategy for mitigating the dangers and capitalizing on the opportunities presented by digital assets and the underlying technology being laid out in an Executive Order (EO) signed by Vice President Joe Biden on March 9 – there’s more to come for us to evaluate and benefit from the digital assets.
Here’s everything you need to know about this framework:
- Six months after US Vice President Joe Biden requested federal agencies to investigate the pros and cons of digital assets and submit their results, this framework was unveiled.
- The potential advantages of a CBDC issued by a central bank were emphasized in this model. The CBDC is designed to be a digital currency; fully backed by the US government and governed by a centralized authority, like the Federal Reserve.
- Getting rid of illicit practices is another topic covered in this framework. As per the fact sheet, the US President plans to ask for changes to be made to the Bank Secrecy Act (BSA), anti-tip-off statutes, and unlicensed money transmitting laws so that they apply explicitly to providers of digital assets like NFT and relevant exchange platforms.
In the end, it is worth mentioning how the Director of the National Economic Council, Brian Deese, claims that the new mandates will position the United States as a global leader in the governance and management of digital assets. But will it work as advertised in the cryptosphere?