Early in September 2022, the White House put out a report calling for the blockchain industry to use more sustainable methods.
Now, the White House has given solutions in the form of an all-encompassing framework based on the “responsible development of digital assets.” This framework shows what will happen next, including the following:
Regulators are stepping up their investigations into wrongdoing in the digital asset market, redoubling their efforts to enforce the rules and regulations that are already in place, and making it easier for agencies to work together.
The Financial Literacy Education Commission is in charge of letting people know about the dangers of digital assets.
The Department of Energy, the Environmental Protection Agency, and other agencies should keep track of how digital assets affect the environment, come up with performance standards when necessary, and give local governments the tools, resources, and expertise they need to fix environmental problems.
Why it is important
When the White House put out an executive order in March telling all crypto-dependent industries to switch to a more sustainable way of doing business, many people in the industry feared that they would be outright banned. With the release of the current framework, it is clear that the administration is more interested in promoting sustainable growth than in banning certain tools or technologies.
What comes next?
Government agencies have been asked to do more research on how to reduce the environmental, economic, and cybersecurity risks that blockchain technology and the digital asset industries it supports pose.
In particular, the Office of Science and Technology Policy and the National Science Foundation will create a “Digital Assets Research and Development Agenda” to start research on topics like next-generation cryptography, transaction programmability, cybersecurity, privacy protections, and how to reduce the environmental impact of digital assets.
The framework also says that all government agencies must work together to make sure the digital asset industry grows in a way that is sustainable.