More On: Department of Commerce
The Department of Commerce has posed 17 questions to aid in the development of a crypto framework
The Department of Commerce will release a series of 17 questions on May 19 that will solicit public feedback to help the department develop a regulatory framework for crypto firms.
The US Department of Commerce is seeking proposals on how to create a framework that will improve American economic competitiveness in digital assets such as cryptocurrency and stablecoins.
The Department of Commerce (DoC) plans to issue a request for comment through the International Trade Administration, which will include 17 questions. On May 19, the request will be published in the Federal Register.
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 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, future role does digital asset mining play in the digital asset sector in the United States?" What can the US government and businesses do to promote competitive, environmentally friendly, and energy-efficient digital asset development?
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.
Remember Biden's crypto executive order from two months ago?
— Adam Kovacevich (@adamkovac) May 10, 2022
Buried in it was homework for the Department of Commerce:
Make a plan for driving U.S. competitiveness and leadership in crypto.
Well... (🧵):https://t.co/zvAbUpG7M8 pic.twitter.com/ymzm1f9g13
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 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.
"How can the federal government and the digital assets industry work together to guarantee that underserved Americans benefit from greater 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].
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