WASHINGTON—The Treasury Department has delivered a framework on cryptocurrencies for American government agencies to work with their international counterparts.
The framework is required under President Biden’s executive order on digital assets, and includes a fact sheet.
The framework “is intended to ensure that…America’s core democratic values are respected,” pointing to reducing the potential use of crypto for illicit finance, promoting access to financial services, supporting technological advancement and “reinforcing U.S. leadership in the global financial system,” TRT World reported, citing language from the framework.
“Inadequate anti-money laundering and combating the financing of terrorism (AML/CFT) regulation, supervision, and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering,” the Treasury report states.
Plans for G7
In terms of international cooperation and coordination, the Treasury Department said it would engage with policymakers and regulators at the G7 on issues related to digital assets, including central bank digital currencies (CBDCs) and integrate new technologies into the international monetary system, TRT World said.
“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 any new payment systems are consistent with US values and legal requirements,” the fact sheet stated.