The U.S. Treasury Department has outlined how it could work with foreign governments to regulate the global cryptocurrency sector.
The Treasury Department has published a “fact sheet” on potential cryptocurrency regulations following an executive order on the issue from American President Joe Biden.
The framework to regulate cryptocurrencies is aimed at protecting consumers, investors, and businesses, and ensuring the ongoing safety of the global financial system, said the Treasury Department.
The framework’s policy objectives also include reducing the potential use of cryptocurrencies for illegal financing and promoting access to financial services and future technological advancements.
“The United States must continue to work with international partners on standards for the development of digital payment architectures and central bank digital currencies to reduce payment inefficiencies and ensure that any new payment systems are consistent with U.S. values and legal requirements,” states the fact sheet.
The cryptocurrency sector has been hit with layoffs, bankruptcies, and liquidity issues in recent weeks, with multiple firms halting withdrawals and trading activity.
The U.S. should also promote the adoption and implementation of international standards through bilateral and regional engagements, according to the Treasury Department document.
Work on regulating the cryptocurrency sector comes as prices for digital coins and tokens collapse around the world. The price of Bitcoin, the world’s biggest digital asset, has fallen nearly 70% from an all-time high of $68,000 U.S. last November to $21,500 U.S. today.
