Crypto digital asset

Central Bank Digital Currencies Importance of Digital Assets When you look at a list of the digital items that can be considered assets, it becomes clear that our lives are more digitally-based than ever. For example, when we want to learn about something, we turn to digitally hosted information because it is quicker and easier than driving to a library, hoping they have the resources you need. Our photos, entertainment, and important documents are mostly in digital form.

Businesses and governments keep and store data and information, all of which have different values depending on how they can be used. When investors, governments, and the general public became aware of blockchain technology and cryptocurrencies in the s, digital assets took on an entirely new meaning.

Cryptocurrencies joined the list of digital assets because people placed a value on them, whether they were intended to be used as assets or not. No matter what you do, your life is filled with digital assets. Here's an example of a digital asset enhanced day: You wake up one morning and see that your favorite runningback has posted a sports video token of his winning touchdown in last year's season, so you purchase it like a trading card from the past.

You now own part of that moment. Digital assets have become significant enough that digital asset management DAM service providers have emerged. DAMs provide digital security for businesses, allowing them to securely store, organize, and quickly access their digital assets. At work, you used a cryptocurrency to buy sales data to analyze a specific market and sent a digital presentation of your findings to your boss, who forwarded it to management.

It allowed them to make critical decisions and was filed away in the company's digital storage vault. On your way home, you were caught in a traffic jam and managed to take a once-in-a-lifetime video on your phone of the eagle that flew in your car window and sat down in your passenger seat.

But they also pose real risks as evidenced by recent events in crypto markets. Over the past six months, agencies across the government have worked together to develop frameworks and policy recommendations that advance the six key priorities identified in the EO: consumer and investor protection; promoting financial stability; countering illicit finance; U.

Together, they articulate a clear framework for responsible digital asset development and pave the way for further action at home and abroad. The reports call on agencies to promote innovation by kickstarting private-sector research and development and helping cutting-edge U. At the same time, they call for measures to mitigate the downside risks, like increased enforcement of existing laws and the creation of commonsense efficiency standards for cryptocurrency mining.

Recognizing the potential benefits and risks of a U. Protecting Consumers, Investors, and Businesses Digital assets pose meaningful risks for consumers, investors, and businesses. Prices of these assets can be highly volatile: the current global market capitalization of cryptocurrencies is approximately one-third of its November peak. One study found that almost a quarter of digital coin offerings had disclosure or transparency problems—like plagiarized documents or false promises of guaranteed returns.

Outright fraud, scams, and theft in digital asset markets are on the rise: according to FBI statistics, reported monetary losses from digital asset scams were nearly percent higher in than the year before. Since taking office, the Biden-Harris Administration and independent regulators have worked to protect consumers and ensure fair play in digital assets markets by issuing guidance , increasing enforcement resources , and aggressively pursuing fraudulent actors.

As outlined in the reports released today, the Administration plans to take the following additional steps: The reports encourage regulators like the Securities and Exchange Commission SEC and Commodity Futures Trading Commission CFTC , consistent with their mandates, to aggressively pursue investigations and enforcement actions against unlawful practices in the digital assets space.

The reports encourage agencies to issue guidance and rules to address current and emergent risks in the digital asset ecosystem. Regulatory and law enforcement agencies are also urged to collaborate to address acute digital assets risks facing consumers, investors, and businesses. The Financial Literacy Education Commission FLEC will lead public-awareness efforts to help consumers understand the risks involved with digital assets, identify common fraudulent practices, and learn how to report misconduct.

Roughly 7 million Americans have no bank account. Another 24 million rely on costly nonbank services, like check cashing and money orders, for everyday needs. And for those who do use banks, paying with traditional financial infrastructure can be costly and slow—particularly for cross-border payments. The digital economy should work for all Americans.

That means developing financial services that are secure, reliable, affordable, and accessible to all. Some digital assets could help facilitate faster payments and make financial services more accessible, but more work is needed to ensure they truly benefit underserved consumers and do not lead to predatory financial practices. To promote safe and affordable financial services for all, the Administration plans to take the following steps: Agencies will encourage the adoption of instant payment systems, like FedNow, by supporting the development and use of innovative technologies by payment providers to increase access to instant payments, and using instant payment systems for their own transactions where appropriate — for example, in the context of distribution of disaster, emergency or other government-to-consumer payments.

The President will also consider agency recommendations to create a federal framework to regulate nonbank payment providers. Agencies will prioritize efforts to improve the efficiency of cross-border payments by working to align global payments practices, regulations, and supervision protocols, while exploring new multilateral platforms that integrate instant payment systems.

The National Science Foundation NSF will back research in technical and socio-technical disciplines and behavioral economics to ensure that digital asset ecosystems are designed to be usable, inclusive, equitable, and accessible by all. Fostering Financial Stability Digital assets and the mainstream financial system are becoming increasingly intertwined, creating channels for turmoil to have spillover effects. Stablecoins, in particular, could create disruptive runs if not paired with appropriate regulation.

Building on this work, the Administration plans to take the additional following steps: The Treasury will work with financial institutions to bolster their capacity to identify and mitigate cyber vulnerabilities by sharing information and promoting a wide range of data sets and analytical tools. The Treasury will work with other agencies to identify, track, and analyze emerging strategic risks that relate to digital asset markets.

It will also collaborate on identifying such risks with U. Advancing Responsible Innovation U. Digital asset firms are no exception. The U. It sponsors cutting-edge research, helps firms compete globally, assists them with compliance, and works with them to mitigate harmful side-effects of technological advancement.

In keeping with this tradition, the Administration plans to take the following steps to foster responsible digital asset innovation: The Office of Science and Technology Policy OSTP and NSF will develop a Digital Assets Research and Development Agenda to kickstart fundamental research on topics such as next-generation cryptography, transaction programmability, cybersecurity and privacy protections, and ways to mitigate the environmental impacts of digital assets.

It will also continue to support research that translates technological breakthroughs into market-ready products.

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The regulatory landscape in the U. Key issues include a focus on chartering, licensing, fraud and financial crimes risks, and consumer and investor protections. The current regulatory landscape for crypto and digital assets is fragmented and evolving quickly.

Gaps and overlaps are being created as the market develops; crypto technology firms are connecting to traditional financial systems and regulated banking entities are building out crypto infrastructure e. Efforts to better define an appropriate regulatory regime, including licensing and chartering authorities, may require legislative change and could also change the relevant markets.

An interagency report recommends Congress consider new legislation to ensure stablecoins and stablecoin arrangements are subject to a federal prudential framework on a consistent and comprehensive basis; additional features would limit issuers to insured depository institutions; subject entities performing stablecoin activities e. SEC and CFTC have each expressed interest in obtaining expanded authorities over stablecoins to the extent they are deemed securities, commodities, or derivatives.

Integrating the digital asset strategy into existing compliance programs. IRS reporting requirements for cryptocurrency and other digital asset transactions beginning Learn more. See a review of the Binance referral program. Save on FTX. Our site is not officially associated with any brand or government entity. Any mention of a brand or other trademarked entity is for the purposes of education, entertainment, or parody. Neither CryptocurrencyFacts. In other words, this is a website on the internet offering free information about cryptocurrency.

This is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice.

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Key issues include a focus on chartering, licensing, fraud and financial crimes risks, and consumer and investor protections. The current regulatory landscape for crypto and digital assets is fragmented and evolving quickly. Gaps and overlaps are being created as the market develops; crypto technology firms are connecting to traditional financial systems and regulated banking entities are building out crypto infrastructure e. Efforts to better define an appropriate regulatory regime, including licensing and chartering authorities, may require legislative change and could also change the relevant markets.

An interagency report recommends Congress consider new legislation to ensure stablecoins and stablecoin arrangements are subject to a federal prudential framework on a consistent and comprehensive basis; additional features would limit issuers to insured depository institutions; subject entities performing stablecoin activities e. SEC and CFTC have each expressed interest in obtaining expanded authorities over stablecoins to the extent they are deemed securities, commodities, or derivatives.

Integrating the digital asset strategy into existing compliance programs. IRS reporting requirements for cryptocurrency and other digital asset transactions beginning Notably, DOJ has launched a National Cryptocurrency Enforcement Team to carry out investigations and enforcement of criminal misuse of cryptocurrencies; SEC and CFTC each continue to actively initiate enforcement actions within their respective jurisdictions.

Neither CryptocurrencyFacts. In other words, this is a website on the internet offering free information about cryptocurrency. This is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice. See our about page , legal and privacy page , and cookie policy for more disclaimers and information.

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