On December 6, the Biden Administration released an extensive report that underlined strategies to combat national corruption. The ‘United States Strategy on Countering Corruption’ report also called digital assets as one of the means of financing illicit activities.
“Advances in digital technology have dramatically improved the efficiency, convenience, and reach of digital alternatives to cash, and accelerated the usage of and commercial trading in digital assets across the world,” the report said. It added:
“At the same time, digital assets have been used in support of a variety of illicit activities, including proliferation financing, ransomware attacks, human and narcotics trafficking, fraud, corruption, and sanctions evasion.”
The White House report noted that the government will continue to monitor the risk associated with digital assets, and would analyze how corruption affects these risks and revise policies and regulations in accordance.
In addition, the report also mentioned CBDCs and said it will participate in CBDC analysis and development in line with its policies on stability, consumer and investor protection. While CBDCs will largely improve efficiency and reduce costs, there are several issues that need attention such as protection of personal information and privacy, security measures, and impact on the financial system.
Although the Biden Administration has taken several steps to develop suitable crypto regulations in place, the regulatory aspect largely remains a grey area in the United States.