TREASURY DEPARTMENT DEFINES KEY TERMS OF COMING CRYPTO REGULATIONS

The Treasury Department has put forward definitions of “digital assets” and “mass adoption,” that would be used in any coming federal crypto regulations.

The Department’s issuance in the Federal Register follows a Biden executive order early this year on an all-government approach to investigating and reporting back on cryptocurrencies and a possible CBDC (Central Bank Digital Currency).

According to Treasury:

“Regardless of the label used, a digital asset may be, among other things, a security, a commodity, a derivative or other financial product,” Treasury wrote. “Digital assets may be exchanged across digital asset trading platforms, including centralized and decentralized finance platforms, or through peer-to-peer technologies.” 

The term “Mass Adoption,” meanwhile, would be applicable to a digital asset that was “used as a common and regular payment method for goods and services.”

According to the tech and government conduit website Nextgov.com, the government will seek comment over the next 30 days regarding its proposed definitions.

Nextgov noted that though the crypto market has seen a huge overall devaluation since Biden’s executive order in January, many politicians consider the use and growth of digital assets as an inevitability.