US Commerce Department requests input from the digital asset

US Commerce Department requests input from the digital asset

In response to a call for comments on a document required by U.S. President Joe Biden's executive order on digital assets, the government agency got eight responses.

One of the numerous reports and other written materials required by US President Joe Biden's executive order "Ensuring Responsible Development of Digital Assets," which is due from the Commerce Department on September 5, is a framework for enhancing American economic competitiveness in digital asset technologies. Up until Tuesday, the Commerce Department asked the public for feedback on the document and offered 17 discussion questions.

The Commerce Department had received eight comments as of Tuesday noon. A few paragraphs to many pages of in-depth examination were included. The response from Mastercard was the longest at 16 pages.

In its statement, Mastercard noted that the United States held a unique position as a centre for both financial services and technical innovation. It recommends a number of actions be taken to protect those benefits. Clear regulations are a major barrier to business and innovation.

To keep the United States at the top, the IT industry trade group Chamber of Progress recommended regulatory certainty and workforce development. The Proof of Stake Alliance provided thoughtful comments to four of the department's discussion questions, praising the benefits of proof-of-stake technology as "the future of digital asset innovation."

The need for the creation of privacy protections and alleviation from "the severe regulatory burden that US digital asset enterprises endure" was eloquently advocated for by a visiting senior research fellow at the George Mason University Mercatus Center.

The Securities and Exchange Commission's Staff Accounting Bulletin 121 was criticised by the American Bankers Association for stifling competition while supporting regulatory clarity. The benefits of a U.S. CBDC were described as "uncertain and unlikely to be achieved" despite the praise for the country's current payment methods. Independent Community Bankers of America openly opposed a U.S. CBDC, claiming that digital assets "offer multiple substantial concerns, including financial crimes and risks for financial stability."

Over a dozen written comments were required in response to the executive directive on digital asset development. The Justice Department released the first of those in June. One of five documents slated for release on September 7 is the framework from the Department of Commerce.