The U.S. Department of the Treasury submits a report on cryptocurrency regulation, enhancing international cooperation to ensure the stability of financial and monetary systems.

The U.S. Department of the Treasury announced on its official website that it has submitted a cryptocurrency regulatory framework report to President Biden on the 7th. The Treasury Department stated that this framework aims to encourage the development of digital assets while respecting core democratic values in the United States to ensure the stability and security of the global financial system and international monetary system.

The U.S. Department of the Treasury announced on its official website that it has submitted a cryptocurrency regulatory framework report to President Biden on the 7th. The Treasury stated that the framework aims to encourage the development of digital assets while respecting core democratic values in the United States to ensure the stability and security of the global financial system and international monetary system.

This regulatory framework was developed in response to Biden's directive on March 9 to ensure responsible development of digital assets. It involves engaging with foreign counterparts and international forums, with the Secretary of the Treasury negotiating with the Secretary of State, Secretary of Commerce, Director of the U.S. International Development Finance Corporation (USAID), and other relevant agency heads.

Biden's executive order issued in March instructed the Treasury leadership to collaborate across departments to develop policy recommendations to mitigate risks associated with cryptocurrencies. Due to inconsistencies in regulatory oversight and compliance across jurisdictions, posing potential risks to investors, interagency and even international cooperation is necessary.

"Inadequate anti-money laundering and countering the financing of terrorism (AML/CFT) regulation, supervision, and enforcement in other countries pose challenges to U.S. investigations of illicit digital asset transactions, often requiring international investigations. Money laundering activities related to ransomware and other cybercrimes frequently occur. Cross-border payments and remittances may also become slow and costly due to various factors, especially when sent to developing or emerging economies," the Treasury noted.

The Treasury emphasized that financial innovation often operates on a multinational scale, impacting households, businesses, and governments worldwide. Therefore, international cooperation among governments, businesses, and other stakeholders is crucial for maintaining high regulatory standards, a fair competitive environment, expanding access to safe and affordable financial services, and reducing domestic and cross-border payment costs.

The Treasury also stated that it will engage with policymakers and regulatory authorities from the G7 on issues related to digital assets, including central bank digital currencies, integrating new technologies into the international monetary system. The U.S. will also collaborate with G20 member countries to identify potential risks digital assets pose to financial stability, promote crypto regulation, and negotiate macro-financial challenges with member countries.

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