The White House is urging regulators to keep a closer eye on digital assets, such as bitcoin and other cryptocurrencies. Getty Images/Marco Bello remove caption
switch to caption Getty Images/Marco Bello
The White House is urging regulators to keep a closer eye on digital assets, such as bitcoin and other cryptocurrencies.
Getty Images/Marco Bello The administration of President Biden is pressing for stricter regulation of digital assets like cryptocurrencies at a time when the acceptance of virtual currency is increasing.
The White House referred to the volatility of digital currencies and a recent drop that has caused problems across the crypto sector in a series of new studies that were published Friday and lay out recommendations.
According to the Biden administration, there are “regular instances of operational failures, market manipulation, frauds, thefts, and scams,” which “represent considerable dangers for consumers, investors, and enterprises.”
BUSINESS While acknowledging the potential of virtual currencies, U.S. regulators and their international counterparts have long been wary of cryptocurrencies. According to them, “Digital assets present potential opportunities to reinforce U.S. leadership in the global financial system and remain at the technological frontier.”
Bitcoin’s value is currently around a third of what it was in November of last year as a result of the collapse of the cryptocurrencies TerraUSD and Luna this year as part of a larger rout.
The new studies urge financial regulators, among other things, to “address present and emergent risks” and crack down on illegal behavior.
Treasury Secretary Janet Yellen has been instrumental in the administration’s approach to digital assets ever since President Biden signed an executive order on them in March. Getty Images/Stefani Reynolds remove caption
switch to caption Getty Images/Stefani Reynolds
Treasury Secretary Janet Yellen has been instrumental in the administration’s approach to digital assets ever since President Biden signed an executive order on them in March.
Getty Images/Stefani Reynolds THE GOVERNMENT IS CONSIDERING NEW REGULATIONS The Securities and Exchange Commission has taken enforcement actions against cryptocurrency companies in recent years. That is what the White House wants to continue.
National security adviser Jake Sullivan and Brian Deese, director of the National Economic Council, released a statement in which they said that the reports “encourage regulators, as they deem appropriate, to scale up investigations into digital asset market misconduct, redouble their enforcement efforts, and strengthen interagency coordination.”
Additionally, the administration urges the Federal Trade Commission and Consumer Financial Protection Bureau to “intensify their efforts to monitor consumer complaints and to enforce against unfair, misleading, or abusive conduct.”
The administration has also encouraged Congress to provide regulators with more specific instructions.
That is beginning to take place. Sens. Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York proposed a bill in June to establish a regulatory framework for digital assets.
According to reports released on Friday, Biden issued an executive order in March to enable the “responsible development of digital assets.” It was designed to simplify how the federal government deals with digital assets.