On Friday, the White House released a comprehensive framework detailing responsible development of digital assets. The framework follows President Biden’s Digital Asset Executive Order and is the first government-wide approach to managing the risks and harnessing the benefits of digital assets.
While the NCUA was not directly tasked with any reports for the Executive Order, the agency is part of multiple interagency groups that are working on reports and making recommendations on digital asset development and regulation. Reports made by other agencies, and future actions taken by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), will have an impact on the digital asset products and services offered to credit unions and their members. FinCEN and other enforcement agencies will better define the digital asset related BSA/AML responsibilities of credit unions.
The reports that make up the framework push regulators, such as the SEC and CFTC, to follow their mandates and “aggressively pursue investigations and enforcement actions against unlawful practices in the digital asset space.” The reports also encourage agencies to collaborate when addressing digital asset risks facing consumers, investors, and businesses.
As a result of these reports, President Biden will work on recommendations to agencies that “create a federal framework to regulate nonbank payment providers.” The reports also note that the President may call on Congress to revise laws to create harsher punishments for digital asset crimes.
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