As the value of cryptocurrencies continues to soar, the United States government has developed a strategy to mitigate the risks associated with these digital assets. On January 27, 2023, the National Economic Council released a statement outlining the Administration’s Roadmap to Mitigate Cryptocurrency Risks.
According to the statement, the Roadmap consists of three main pillars:
1. Education & Outreach: This pillar emphasizes the importance of educating the public about the potential risks associated with cryptocurrencies. This includes guidance on protecting against scams and improper disclosures and making sure users are aware of the risks associated with major price fluctuations. Additionally, the Roadmap calls for the establishment of a public-private partnership to help inform the public about the risks of cryptocurrencies and to help law enforcement and regulators better identify, deter, and prosecute suspicious activities related to crypto assets.
2. Regulatory Modernization: In order to promote greater transparency and better protect investors, this pillar supports the development of national standards and guidance for virtual asset companies. This includes developing auditing, reporting, and compliance standards and strengthening investor protections by requiring disclosures from virtual asset companies.
3. International Cooperation: This pillar focuses on strengthening partnerships between the United States and its allies to combat the proliferation of illicit uses of cryptocurrencies, particularly in relation to money laundering and terrorist financing. The Roadmap calls for increased collaboration on the enforcement of regulations, the sharing of intelligence and information, and the development of global standards.
The Administration’s Roadmap to Mitigate Cryptocurrency Risks is an important step towards better protecting investors, businesses, and consumers. With its focus on both education and enforcement, the Roadmap promotes greater transparency and accountability while helping to combat illicit activity. Ultimately, the Roadmap provides a comprehensive approach to mitigating the risks associated with cryptocurrencies.