The Biden ‐​Cryptocurrency Reports: Part 4, Responsible Advancement of U.S. Competitiveness in Digital Assets

Nicholas Anthony andJack SoloweyThe reports mandated by President Biden ’s Marchexecutive order are here and seek to offer a  comprehensive framework for the responsible development of digital assets (commonly known as cryptocurrencies). Asnoted early after the release, however, many of the items were left to be determined. But that doesn ’t mean that the reports should be ignored. This series of blog posts will tease out some of the subtler points from each of the reports released on Friday.Recommendations from the U.S. Department of CommerceThe fourth report, “Responsible Advancement of U.S. Competitiveness in Digital Assets, ” came from the U.S. Department of Commerce. And as the name suggests, the Commerce Department was tasked with identifying how the United States can remain and further become a global leader in the cryptocurrency and blockchain industries (Section 8(b)(iii) ofExecutive Order 14067). To that end, the report offered the following four recommendations:Ensure comprehensive and effective cryptocurrency regulation.Engage with other countries on policy decisions to promote trade.Engage with the private sector to promote innovation.Invest in technological research and development.When it comes to offering comprehensive regulation, the report ’s frequent refrain was the importance of promoting “healthy competition.” However, the report did not grapple enough with the fact that steep compliance costs can undermine that very competition. Barriers ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs