White House Urges Congress To Take A Closer Look At Cryptocurrency Regulations
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Joe Biden’s presidency has pushed the US Congress to give regulators more authority over the cryptocurrency market. A statement titled The Administrations Roadmap to Mitigate Cryptocurrencies’ Risks was released by four senior White House officials. Congress was advised to increase its regulatory efforts in the cryptocurrency market.
🔥 White House Blames Congress for Failure to Enact #Crypto Regulations
Four senior Biden officials penned a note Friday urging lawmakers to hasten their efforts to create a regulatory framework for #cryptocurrencies.
Congress “needs to step up its efforts”. #Bitcoin
— Altcoin Archive (@AltcoinArchive) January 29, 2023
However, the aim behind these efforts is to make sure cryptocurrencies do not even threaten the health of the financial system. Industry participants should protect investors by establishing procedures for curbing dishonest activities. Thereby, the officials advocate for Congress to give regulators authority so they can stop the misappropriation of client assets.
Congress should impose stricter disclosure and openness rules for cryptocurrency companies, the statement suggested. In addition, it advocated for harsher sanctions for people and businesses who disregard the law.
In contrast to this, the officials listed a number of things Congress should not include in any new crypto regulations in the same statement. It dissuaded established financial institutions, like pension funds, from approving cryptocurrency exposure.
The irony of US crypto regulations:
1. Make it impossible for crypto companies to get banking services from responsible “adult” banks
2. When small banks come in response to to the market demand (Silvergate/Signature) & don’t do proper compliance they push them to drop crypto https://t.co/arCpH53i4t
— Maya Parody (@mayazi) January 28, 2023
The officials cautioned that doing so would be a grave error and would strengthen ties between cryptocurrencies and the larger, global financial system. The report stated the demise of the UST stablecoin from LUNA and the demise of the FTX cryptocurrency exchange. The occurrence of these two things makes 2022 a “tough year for crypto,” according to some observers.
The majority of cryptocurrency entities, according to officials’ findings in the same report, disobey basic risk management guidelines. Authorities have also claimed that cryptocurrency companies are infamous for deceiving customers. Conflict of interest, inadequate disclosure of information, and fraud are among the reasons given.
Other Entity To Regulating Cryptocurrencies
Congress is not the only entity responsible for crypto regulation as the officials stated in the report that the White House would soon reveal its priorities for developing digital assets research and development.
The White House’s worries and suggestions almost exactly mirror those of the American regulators. Kristin Johnson, the commissioner of the Commodity Futures Trading Commission (CFTC), urged lawmakers to push for more crypto acquisition reviews, as an illustration.
I’ll be able to say this when effective, modern, knowledgeable regulations are deployed in the US regarding digital assets, blockchain, and crypto.
We want to build. We want to expand the real world use cases. And we want others to benefit from our labors in building new tools! https://t.co/4V3faX3cqE
— ZrowGz.lens 🧢 🏴 (@zrowgz) January 30, 2023
The government backs ethical technological advancements that reduce the cost, increase safety, and expand the accessibility of service delivery. Furthermore, safety measures will make sure that new technologies are secure and helpful to everyone, not just a select group of people.