Blockchain Association Slams Biden Administration's Crypto Framework

The Blockchain Association on Friday slammed the "Comprehensive Framework" for regulation of cryptocurrencies published by the White House, stating that it was a “missed opportunity” to cement the United States' relationship with digital assets.

In a statement, Kristin Smith, Executive Director of Blockchain Association stated that while intended to be part of a broader government and stakeholder effort to bring better regulation to crypto assets, these reports focus on risks – not opportunities – and omit substantive recommendations on how the United States can promote its burgeoning crypto industry, including job creation, improvements to the financial system, and expanded access for all Americans.

Missed opportunity: Blockchain Association

“Today’s reports and summaries from the Biden administration’s executive order on digital assets are a missed opportunity to cement U.S. crypto leadership… Crypto is here for good – we will continue to work with the administration and Congress to advance constructive policies that will encourage innovation and ensure that all Americans can enjoy the full benefits of crypto networks,” she stated.

After six months of research into the cryptocurrency industry, the White House published the "First-Ever Comprehensive Framework for Responsible Development of Digital Assets" which outlines the findings and suggestions of multiple government departments.

President Joe Biden signed an executive order and directed his government to study cryptos in March of last year.

Like the order, the "Comprehensive Framework" does not establish any new laws, but it does give a clearer picture of how crypto regulations in the U.S. will be handled.

The new framework claims to reflect "the input and experience of numerous stakeholders across government, business, academia, and civil society" and is based on research from nine studies that have been presented to the president since his order.

The stakeholders have a wide range of concerns, and their proposals go beyond the obvious (such as consumer rights, the environment, and national security) to solidify the U.S.'s position as a worldwide leader in crypto by fostering private-sector innovation and global cooperation.

Bitcoin maximalists criticize the crypto framework

Meanwhile, Bitcoin BTC/USD maximalists Michael Saylor and Dylan LeClair criticized the Biden administration’s crypto framework and alleged that environmental concerns are being used as a pretext to “undermine” Bitcoin.

“The latest White House Crypto Climate & Energy Report is full of misinformation generated and promulgated by unscrupulous crypto promoters in order to undermine #Bitcoin and champion their own interests,” Saylor said on Twitter.

Crypto framework is just the beginning

The study on creating a thorough regulatory framework for cryptocurrencies in the U.S. was among the first needed after President Biden issued the order in March, but the job is far from over.

The ramifications of launching a digital dollar will be further studied by the Fed and Treasury Department.

According to the White House, the Financial Stability Oversight Council will release a report in October on the dangers to financial stability posed by digital assets and the corresponding regulatory holes.

The framework is divided into the following sections: "Protecting Consumers, Investors, and Businesses," "Promoting Access to Safe, Affordable Financial Services," "Fostering Financial Stability," "Advancing Responsible Innovation," "Reinforcing Our Global Financial Leadership and Competitiveness," "Fighting Illicit Finance," and "Exploring a U.S. Central Bank Digital Currency (CBDC)."

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Photo: Created with an image from jlhervàs on Flickr.