Back on March 9, U.S. President Joe Biden signed an executive order—titled “Ensuring Responsible Development of Digital Assets”—which expressed the government’s interest in forming regulations surrounding cryptocurrency, NFTs and other digital holdings. The American Gaming Association (AGA) has endorsed this order, and has asked for the administration’s support in incorporating those guidelines into the gaming industry.
Due to the fact that companies and regulators are already venturing into these fields as it is, the AGA is seeking “specific and appropriate” initiatives to help make transitions as seamless as possible.
Alex Costello, vice president of government affairs for the AGA, told CDC Gaming Reports that because gaming is already a “highly regulated industry,” those involved “ must ensure that any adoption of new technology is done in a responsible and compliant manner.”
One of the biggest reasons why the AGA is in support of digital assets is because they are much easier to track, which allows for much more protection against money laundering and problem gambling, as opposed to cash, which has always given both operators and regulators headaches for both of those issues.
“Blockchain provides a unique opportunity to track transactions, but for gaming purposes, the patron’s identity and location would need to be verifiable to properly implement KYC and AML protocols,” said Costello.
She added: “What we want to ensure is that any federal regulation considers gaming’s unique circumstances, so operators have the choice to offer digital asset payment options and feel confident in their ability to remain compliant. It remains to be seen how ubiquitous digital currency will become, but with gaming operations currently in 44 states, we have a vested interest in helping to shape how future financial instruments are regulated on a federal level.”
