Changpeng Zhao, the CEO of Binance, has praised the Digital Asset Report released by the President Joe Biden’s administration. It is despite negative reception in some corners of the crypto space.
CZ Believes New Framework Will Foster Innovation
Changpeng “CZ” Zhao, has taken to Twitter to laud the digital asset reports released by the Biden administration, which aims to provide a policy framework for bitcoin (BTC) and other cryptocurrencies. The administration has made it clear that it strongly believes that getting it right will help “protect consumers, markets and spark responsible innovation.”
“The correct regulations will drive technological innovation and preserve crypto’s fundamental value propositions of freedom and empowerment while ensuring the right guardrails are in place for consumer protection and choice.” He tweeted on September 16, 2022, adding “the US’s whole-of-government approach to crypto regulation will bring much-needed consistency and clarity vs the current patchwork of state laws and regulations that govern this space.”
The CEO also talked up the US framework’s focus on consumer protection, fraud, and illicit activity as a critical part of future regulations. He stated that Binance embraces the opportunity to work with regulators and has grown its compliance team “by 500 percent and launched law enforcement training.”
I will be recalled that on September 16, 2022, the White House released its first-ever framework on what crypto regulation in the U.S. should look like. The framework outlines how the financial services industry should evolve to make borderless transactions easier, as well as how to crack down on fraud in the digital asset space.
It included calls from the Treasury Department to “double down” on regulation, further support for research on central bank digital currencies (CBDC), and plans of action against digital asset usage by bad actors.
Some of the key takeaways from the White House’s new crypto framework include the section which emphasized the framework’s focus on eliminating illegal activity in the industry.
The framework also talked about the potential for “significant benefits” from a U.S. central bank digital currency, or CBDC, which translates to a digital form of the U.S. dollar.
The long-awaited development from Washington has, however, captured the attention of the crypto industry, with many criticizing the reports for a lack of clear policy recommendations.
The Blockchain Association, one of the most prominent digital asset industry groups, said the new reports lack “substantive recommendations.”
The group’s Executive Director Kristin Smith called the reports “a missed opportunity to cement U.S. crypto leadership” in a statement, and criticized them as focusing too much on the risks of cryptocurrencies instead of their potential.
In the same vein. Sheila Warren, the CEO of Crypto Council for Innovation also slammed the reports, saying they were “outdated and unbalanced” and she saw the framework as a lack of clear policy recommendations.
Lawmakers on the other side of the aisle were also left unimpressed by the development. Sen. Pat Toomey (R-Pa.), a prominent Republican on the Senate Banking Committee, stated that true regulatory frameworks will require “more than just reports.”
In a statement, he said:
“What’s clearly needed is a comprehensive, tailored framework that allows these new technologies to thrive with appropriate guardrails for consumers.”
The framework follows an executive order issued in March 2022, in which President Joe Biden called on federal agencies to examine the risks and benefits of cryptocurrencies and issue official reports on their findings.