U.S. rolls out first crypto regulation initiative focused on working with global partners

Yahoo Finance reporter Jen Schonberger details a new initiative out of D.C. that would regulate the crypto space by working with global allies.

Video transcript

RACHELLE AKUFFO: The Treasury Department just released its first crypto regulation report since President Biden's executive order. Yahoo Finance's Jen Schonberger is here to break it down for us. So, Jen, what do we need to know?

JENNIFER SCHONBERGER: Good afternoon, Rachelle. That's right, the first of many forthcoming reports from the Biden administration on how to regulate cryptocurrencies at the direction of President Biden's executive order out this afternoon. This one focused on coordinating with global allies on regulating crypto. In a memorandum to President Biden, the US Treasury, in consultation with secretaries of state and commerce, among others, say the US must work with international partners to develop global standards for digital payments and central bank digital currencies.

Specifically, the US will continue working with the G7 on crypto, focusing on movement of money in private and public sectors, reducing payment inefficiencies, CBDCs, and adoption of new technologies. The US will work with key allies to develop a vision for digital assets to ensure financial stability, national security through strong regulations. And the US will also work with the G20 to engage with other major economies to make cross-border payments using crypto more seamless and safe.

Now when it comes to CBDCs, the agencies recommend that the US should explore opportunities to experiment with other countries on technologies. The agencies say CBDCs offer the opportunity for US companies to lead in developing infrastructure and technology for CBDCs around the world and at home, should one be pursued.

Now this report coming as the European Union put forth its most comprehensive crypto regulation expected to be implemented within the next 18 months, and as we saw the introduction of the most comprehensive legislative proposal from senators Cynthia Lummis and Kirsten Gillibrand earlier this year on regulating crypto. This is the first of many reports from the Biden administration on how to regulate crypto. The bulk and the biggest of those reports, including one on whether to adopt a CBDC, will be out later this fall. Guys.