“Cryptocurrency: An Enforcement Framework”, released on 8 October by the US Department of Justice (DoJ), is an important document for anyone with a project in the open finance field. Despite what in all likelihood will be a Biden presidency, DoJ is not expecting to change its stance markedly with the change of administrations when it comes to cryptocurrencies and non-fiat banking. Thus, the document gives guidance for how the new administration will determine the legality of a given project.
As mentioned previously, we at Tagion are taking a long look at the framework, and we’ll give our views on it by examining each of its three parts.
Since DoJ focuses mainly on the legality of any endeavor, titling Part I as Threat Overview is not a surprise, and it reads somewhat like a SWOT analysis. There is little rah-rah! enthusiasm shown for crypto. Likewise, there is no overbearing fight-to-the-death imagery from the sword-bearer of the fiat system in America. This document is a cold-eyed look at the threats posed to the current legal system after a dispassionate overview of how the technology (mostly blockchain-oriented) works. There is little new, but there are examples given.
Moreover, DoJ does point to legitimate uses of crypto. As Securities Exchange Commission and DoJ statements are of vital importance to the industry, including to us here at Tagion, the following statement is of the utmost importance:
Whatever the overall benefits and risks of cryptocurrency, the Department of Justice seeks to ensure that uses of cryptocurrency are functionally compatible with adherence to the law and with the protection of public safety and national security.
At Tagion we’re paying close attention to the next chapter, Law and Regulations, and how they’ll affect us world-wide. We’ll report on that next week!
https://www.justice.gov/ag/page/file/1326061/download
