The Task Force produced the Cryptocurrency Enforcement Framework to provide a coherent guideline for those who want to understand the priorities of federal regulators’ enforcement in the cryptocurrency industry.
The Cryptocurrency Enforcement Framework
The Cryptocurrency Enforcement Framework is an 83-page report that begins with the history of “virtual currency” and the potential for abuse. It then acknowledges that these assets are vital to the U.S. and its allies.
“Innovation can drive society forward. But innovation does not occur in a vacuum. Public policy can establish background conditions that help the innovative spirit thrive—or create an environment in which that spirit is inhibited, or suppressed.”
The Task Force noted that the existence of cryptocurrency is “relatively brief” but it already “plays a role in many of the most significant criminal and national security threats” confronting the United States.
According to the Task Force, the illegal uses of cryptocurrency fall under three categories:
- financial transactions associated with the commission of crimes;
- money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements;
- crimes, such as theft, directly implicating the cryptocurrency marketplace itself.
The government has tools to combat the illegal use of cryptocurrencies
The report also highlighted the fact the society and the government art powerless to address the threats associated with the illegal use of cryptocurrencies.