Daphne Psaledakis & Matt Spetalnick

WASHINGTON (Reuters), – The administration of President Joe Biden on Monday issued a list of recommendations for reorganizing its use of economic sanctions in order to make them a more efficient tool of U.S. international policy. But, it warned that much more must be done to safeguard against the danger posed by the rise and spread of cryptocurrencies.

The U.S. Treasury Department has unveiled an updated framework that will allow for a more surgical approach in sanctions. This is in contrast to the blunt-force methods used by Donald Trump.

According to Treasury, countries that reduce their use of U.S. dollars and expose to U.S. finance system may undermine the effectiveness of sanctions. Digital currencies and other technological innovation also present a threat to this tool’s viability.

Although the Biden administration tried to move on from the Trump era with the policy prescriptions, they offered no specifics about how it could alter its sanctions on major targets like Iran, Venezuela, and China.

Officials from the Treasury Department promised that the process would be more rigorous and modernized through the framework. This new framework seeks to link designations with clear objectives. It also emphasizes the importance and necessity of multilateral coordination as well as mitigating human rights impacts.

In order to combat the digital currency threat, the new guidelines recommend that Treasury invest in its workforce and technological capabilities.

According to a Treasury senior official, “The important thing for us is making certain that sanctions are as effective as possible.”

On Monday, Treasury officials stated that the U.S. would continue to use sanctions as a key part of its foreign policy. While the Biden administration has sought to make more precise use of this tool, it is still maintaining pressure on Venezuela and Iran as well as other sanctions-affected countries.

Wally Adeyemo (Deputy Treasury Secretary) stated that “Sanctions” are an important tool for advancing national security interests.

“The Treasury’s review of sanctions has proven that this powerful tool continues to produce results. However, it faces new challenges. This critical tool is being modernized and strengthened by our allies and partners.

But so far Biden’s approach, while continuing to inflict economic damage on sanctions targets, has been no more successful than Trump’s efforts at forcing U.S. foes and rivals to bend to America’s will.

Trump employed sanctions as his go-to response to international problems ranging from Iran’s military activities to North Korea’s nuclear arsenal to Venezuela’s political crisis.

Biden has made changes to his office, while maintaining many of Trump’s sanction programs.

Despite Republican pressures, Trump removed all sanctions against officials at the International Criminal Court. He also resisted the call to sanction European companies involved in Russia’s Nord Stream 2 construction.

Biden offered to reduce sanctions against Iran in return for compliance with 2015’s nuclear deal, but indirect negotiations between Washington-Tehran have been stagnant for several months.