US Department of Commerce proposes 17 questions to develop crypto framework

The US Department of Commerce is seeking proposals on how to create a framework for cryptocurrency and stablecoins, thereby it plans to issue a request for comment through the International Trade Administration, which will include 17 questions.
US Department of Commerce proposes 17 questions to develop crypto framework
US Department of Commerce proposes 17 questions to develop crypto framework

The inquiries concern the Department of Commerce’s efforts to build a framework for addressing impediments to American economic growth including digital assets, as requested by President Joe Biden’s Executive Order.

The Department of Commerce’s unpublished request for comment.

The questions will cover a variety of subjects relating to crypto firms in the United States, such as opinions on how laws might improve competition and the present challenges that business owners face.

It will also cover the mining of digital assets, most likely in regard to Bitcoin and Ethereum. One asks:

“What, if any, is the future role of digital assets mining in the U.S. digital assets sector? In what ways can the U.S. government and U.S. companies drive competitive, sustainable (for the environment and energy consumption) development of digital assets?”

According to the Cambridge Bitcoin Electricity Consumption Index, the United States is presently the leading Bitcoin mining country, producing 37.84 percent of the world’s hash power as of January. According to this indicator, it shows that many companies believe in the future of digital asset mining.

Demand for sustainable energy sources and carbon neutrality is increasing among those miners. On May 10, investors such as Kevin O’Leary, who are pushing demand for sustainable mining, told Cointelegraph that the crypto business is “at an intriguing inflection point” in terms of environmental awareness.

Although the Federal Reserve Board stated in its Financial Stability Report on May 9 that it has no plans to launch a Central Bank Digital Currency (CBDC), one of the DoC’s inquiries will inquire about the CBDC’s potential impact on business.

The Department of Commerce to investigate digital assets

The Department of Commerce will also investigate whether digital assets can assist unbanked Americans in gaining access to financial instruments that they may require but cannot obtain through regular channels.

Insiders in the crypto business have long argued that banking the unbanked is a natural match for the technology.

“What role can the Federal government and the digital assets sector play to ensure that under-served Americans can benefit from the increased commercial availability of digital assets?”

The Department of Commerce’s thinking in developing the framework for an American digital asset company regulatory framework will be informed by the request for public comment.

Secretary of Commerce Gina Raimondo’s March 9 statement in response to President Biden’s Executive Order illustrates this early and open approach to the Department of Commerce’s activities.

She stated that her agency would engage with digital asset industry partners to “mitigate risks for the firms and individuals that rely on it” in order to strengthen “the resilience of the US financial system.

If the questions are released on May 19, as planned, comments will be welcomed until July 5 and should be addressed to [email protected]