U.S. President Joe Biden ordered federal agencies in March to analyze the crypto industry in order to design better regulations protecting users. After six months of Biden’s order, the government authorities issued reports covering recommendations for the crypto regulatory framework needed to drive transparency and prevent illicit activities.
The cryptocurrency reports published on Thursday faced criticism from a few crypto companies that it lacks clarity through some corners of the crypto ecosystem. Contrary to these claims, the CEO of the world’s leading blockchain crypto exchange, Changpeng Zhao, also known as C.Z., praised the first ever government papers on crypto regulation and intended to work with legislators.
C.Z. added in his tweets on Saturday;
The U.S.’s whole-of-government approach to crypto regulation will bring much-needed consistency and clarity vs the current patchwork of state laws and regulations that govern this space. The correct regulations will drive technological innovation and preserve crypto’s fundamental value propositions of freedom and empowerment while ensuring the right guardrails are in place for consumer protection and choice.
The reports come up following Biden’s administration’s efforts to establish a transparent ecosystem by collaborating with state agencies. It includes the Treasury Department’s calls to ramp up its work to oversee potential risks and other issues cryptocurrency involves. The documents also stressed the need for extended research on the CBDC’s programs and action plans for bad actors moving funds illegally.
After months of research and analysis of the blockchain system, regulators have prioritized several policy recommendations in the report. It covers U.S. leadership in the global financial system, consumer and investor protection, countering illicit finance, promoting financial stability, economic competitiveness, financial inclusion, and responsible innovation.
CZ Cooperates With Global Regulatory Agencies
The government’s focus on the growing financial crimes in crypto and proposed action plans against bad actors have particularly won praise from C.Z. Citing the recommended policies, the CEO expressed his intentions to welcome and comply with the new regulation.
Contrary to this, a couple of crypto industry leaders, including the Blockchain Association and Crypto Council Innovation, criticized the reports highlighting new rules under consideration. For example, the Association touted the report lacks “substantive recommendations,” and the Exec. Director said the report excessively focuses on the risks.
Likewise, the CEO of Crypto Council For Innovation, Sheila Warren, said the recommendations are not clear as they should be and are “outdated and unbalanced.”
Notably, Zhao always favors and cooperates with the world’s legislators. For instance, he also praised the European Union’s Market in Crypto Assets (MiCA) rules during the Binance Blockchain Week held in Paris last week. C.Z. added that it would become a “global regulatory standard.”
So far, the cryptocurrency exchange Binance has secured licenses in several regimes of Europe, such as Italy, France, and Spain, and faced hurdles in the U.K. and Netherlands regarding licensing.
Featured image from Pixabay and chart from TradingView.com