The US Treasury would like to see a little closer cooperation between various global regulators on the subject of cryptocurrency regulation.
department, whose commentary on the need for international coordination was made in a fact sheet released Thursday, which says such conversations are crucial to address the potential risks that could find fertile ground with the increased use of digital assets.
,Uneven regulation, supervision and compliance across jurisdictions creates opportunities for arbitration and poses risks to financial stability and the protection of consumers, investors, businesses and markets.The department said in the release.
The framework, highlighting the inter-agency engagement between the US and allies around the world, was submitted to President Biden by the Secretary of the Treasury.
It also included the Secretary of State, the Secretary of Commerce and the US Agency for International Development (USAID).
Expected more than G7, G20 and FATF among other organizations
The US Treasury’s call was part of a framework on digital assets sent to President Joe Biden, and follows an earlier executive order targeted to ensure responsible innovation in the crypto industry.
The US government aims to take a unified approach to fostering major innovations in digital assets, according to Treasury officials. However, it wants to build relationships around the world to make it easier to investigate illegal transactions through offshore accounts.
Adequate regulation and cooperation will make it easier to combat money laundering, possible financing of terrorism, ransomware attacks, theft of sanctions. These and other major concerns could pose both national security and financial stability risks, the department said.
As such, the US Treasury is seeing further coordination and commitment from major organizations such as the G7, G20, the Financial Stability Board (FSB). Financial Action Task Force (FATF) and Organization for Economic Co-operation and Development (OECD).