White House Calls For More Regulations:- President Biden’s administration is advocating for stricter regulations on digital assets such as cryptocurrencies, at a time when the popularity of virtual money is growing.
The White House cited the volatility of virtual currencies and a recent slump in the crypto landscape in a series of new reports released Friday that lay out recommendations.
“Digital assets pose significant risks for consumers, investors, and businesses,” according to the Biden administration, noting “frequent instances of operational failures, market manipulation, frauds, thefts, and scams.”
US regulators, like their global counterparts, have long been wary of cryptocurrencies, even as they recognize their potential, saying, “Digital assets present potential opportunities to reinforce US leadership in the global financial system and remain at the technological frontier.”
TerraUSD and Luna cryptocurrencies collapsed this year as part of a larger rout, and bitcoin’s value is now about a third of what it was last November.
The new reports, among other things, urge financial regulators to crack down on illegal practices and “address current and emerging risks.”
The White House Calls For More Regulations
The Securities and Exchange Commission has taken enforcement actions against cryptocurrency companies in recent years. The White House wishes for this to continue.
“The reports encourage regulators, as appropriate, to ramp up investigations into digital asset market misconduct, redouble enforcement efforts, and strengthen interagency coordination,” said national security adviser Jake Sullivan and National Economic Council Director Brian Deese in a statement.
In addition, the administration recommends that the Consumer Financial Protection Bureau and the Federal Trade Commission “redouble their efforts to monitor consumer complaints and enforce against unfair, deceptive, or abusive practices.”
At the same time, the administration has urged Congress to provide more specific guidance to regulators.
That is beginning to happen. Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) introduced legislation in June to create a regulatory framework for digital assets.
The reports published on Friday are the result of an executive order signed by Biden in March to ensure the “responsible development of digital assets.” Its goal was to simplify the federal government’s approach to digital assets.