First White House Encryption Framework and Missed Opportunities – Law Decoded, September 12-19

Industry has not received the document well, as policy makers' focus on security and enforcement is n is only too visible.

At the end of last week, federal agencies presented the results of their six months of work on key directions for the regulation of digital assets in the United States. The resulting first-ever encryption framework, published on the White House website, may not contain many surprises or exact details, but, under President Joe Biden's executive order, it will affect without no doubt the political decisions to come.

Perhaps the most important section of the framework is dedicated to Central Bank Digital Currencies (CBDCs). He revealed that the administration has already developed policy goals for a CBDC system in the United States, but further research into the possible technological underpinnings of such a system is needed. Still, the intent seems serious enough as the Treasury will lead an interagency task force with participation from the Federal Reserve, National Economic Council, National Security Council, and Office of Science and Technology Policy.

The industry has not welcomed the document, as policymakers' emphasis on security and enforcement is all too visible. Kristin Smith, executive director of the US-based Blockchain Association, called it "a missed opportunity to cement US leadership in crypto," pointing to a focus on risk, not opportunity, and the lack of substantial recommendations...