A US President Working Group (PWG) released a digital assets framework to “support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy”, according to a statement.
The PWG is expected to submit a report within six months recommending regulatory and legislative proposals, with some of the focus being a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the US with provisions for market structure, oversight, consumer protection, and risk management.
SIFMA president and CEO Kenneth Bentsen said in a statement: “SIFMA appreciates the engagement of the President’s Working Group (PWG) on Digital Assets Markets in supporting innovation and regulatory modernization. SIFMA has proposed a series of recommendations to the PWG to bolster US leadership in digital assets by removing obstacles to bank engagement with digital asset activities, and we welcome the PWG’s support for many of these recommendations. This includes clarifying that banks can permissibly engage in crypto asset activities; creating consistent rules across agencies; regulating the activity, not the technology; and setting clear and uniform risk-management expectations.
“SIFMA continues to encourage policymakers to preserve the protections of existing regulatory frameworks as they move forward, including the importance of rules designed to protect investors from potential conflicts of interest.”