White House unveiled a concept for regulating cryptocurrencies in the U.S.

New directives aim to develop financial services industry, simplify borderless transactions and fight against fraudsters in digital currency space

The White House unveiled a concept for regulating cryptocurrencies in the U.S.

The White House presented the first-ever concept for regulating the U.S. cryptocurrency market, CNBC reported. The new proposals were developed over six months after President Joe Biden called on authorities in March to study the risks and benefits of cryptocurrencies and submit official reports.

One of the items in the framework aims to combat illegal activities in the digital currency industry. Specifically, it is proposed to consider amendments to the Bank Secrecy Act, laws prohibiting disclosure of information and against money transfers without a license, so that they are directly related to providers of digital asset services.

Also, the White House proposals specifically mention the potential of Central Bank Digital Currencies (CBDC). The concept states that digital dollars can make the U.S. payment system more efficient and set the stage for further technological innovation, allowing for faster cross-border transactions.

The U.S. government stressed that digital currencies, especially stabelcoins, need regulation because otherwise they could lead to “devastating consequences. The concept points to the collapse of the cryptocurrency TerraUSD, which led to a series of bankruptcies with a combined loss of nearly $600 billion.

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