The US Treasury Department calls on Biden to work with G7, key allies in regulating crypto

A new initiative by the US Treasury Department calls on President Biden to work with international partners on cryptocurrency regulation.

In a memorandum to the President, the US Treasury Department – ​​in consultation with the Secretary of State and Secretary of Commerce – aims to develop global standards for digital payments and central bank digital currencies (CBDCs) to protect consumers and businesses and ensure financial stability.

“The United States must continue to work with international partners on standards for the development of digital payment architectures and CBDCs to reduce payment inefficiencies and ensure that all new payment systems are consistent with US values ​​and regulatory requirements,” the report said.

The agencies recommend the US to continue working with the G7 on crypto and to focus on private and public sector money transactions, reducing payment inefficiencies, CBDCs and new technology adoption.

They also encourage the US to work with key allies to develop a vision for digital assets that ensures financial stability and national security through strict regulations. These include consumer and investor protection, protection against arbitrage opportunities, money laundering, terrorist financing and sanctions evasion.

U.S. Treasury Secretary Janet Yellen testifies during a House Ways and Means Committee hearing on President Biden's proposed 2023 U.S. Budget on Capitol Hill in Washington, U.S., June 8, 2022. REUTERS/Jonathan Ernst

U.S. Treasury Secretary Janet Yellen testifies during a House Ways and Means Committee hearing on President Biden’s proposed 2023 U.S. Budget on Capitol Hill in Washington, U.S., June 8, 2022. REUTERS/Jonathan Ernst

Another recommendation from the memorandum is that the US work with the Organization for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF) and the G20 to work with other major economies to make cross-border payments using crypto more seamless and secure shape. When working with foreign partners, the agencies say the rules should strengthen U.S. leadership in the global financial system.

The report is the first of many forthcoming reports from the Biden administration under the direction of the presidential executive order regulating cryptocurrencies, issued in March.

Regarding CBDCs, the agencies recommended that the U.S. explore opportunities to experiment with other countries with technologies that would offer American companies the opportunity to lead the development of infrastructure and technology for CBDCs around the world and domestically , if one is pursued .

This report comes as the European Union presented the first comprehensive crypto regulation, which is expected to be implemented within the next 18 months and could set a global standard. Back in the US, Sens. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced sweeping legislation regulating crypto in June.

Jennifer Schonberger covers cryptocurrencies and policies for Yahoo Finance. Follow her up @Jenniferism.

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