The United States Treasury pushed the US government for uniform global cryptocurrency regulations to prohibit the illegal activities associated with cryptocurrencies and also to give better rooms to evolve.
Just a couple of days ago, The United States Treasury Department published its suggested global digital assets regulation framework. The proposed framework includes all necessary details to regulate the Crypto & blockchain industry at the same time to give value & respect to the traditional financial system. So basically, the proposed crypto regulatory framework of the Treasury aimed to bring the crypto sector & traditional banking sectors to evolve together in respect to each other.
The fact sheet of the proposed framework seeks to bring restrictions on the crypto industry, to limit the use of cryptocurrencies in certain areas, where illegal use of crypto can be minimized as much as possible.
Agency also noted that perfect & precise regulation to include cryptocurrencies under the traditional financial banking system will bring better financial inclusion and drive innovations.
Earlier this, Janet Yellen, Secretary of US Treasury, indirectly suggested the US government should focus on bringing the US agencies’ power to a priority level in the crypto sector, to bring the position of the US as a global leader.
Yellen explained that US government agencies should work with international partners to bring better policies on digital innovations like Central Bank Digital Currency (CBDCs).
The US Treasury noted that efforts in central bank digital currency (CBDC) development with better policies may “reduce payment inefficiencies” and also the US government needed to “ensure that any new payment systems are consistent with U.S. values and legal requirements”.
At present around 100 Central Banks are working on a CBDC-based payment system, to achieve a better level of the banking system with better efficiency. And these things are imposing pressure on the US to work on CBDC.