White House wants Congress to “step up its efforts” on crypto regulations

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On Friday, the Biden administration asked the US Congress to expand regulators’ powers over the crypto industry. Four senior White House officials issued a Report ‘Administrative Roadmap to Mitigate Cryptocurrencies’ Risks.’ It urged Congress to “step up its efforts” on crypto market regulations.

Table of Contents

Contents of the report

The administration’s primary focus is to ensure that cryptocurrencies do not undermine financial stability. At the same time, the industry needs to protect investors with structures that hold bad actors accountable. To that end, the four officials want Congress to expand regulators’ powers to prevent misappropriation of consumer assets. It will also reduce conflicts of interest.

The report recommended that Congress strengthen transparency and disclosure requirements for crypto companies. It also prescribed severe penalties for individuals or organizations violating the rules laid down.

In the same report, the officials listed things Congress should avoid when crafting new crypto regulations. This has discouraged major financial institutions from green-lighting such pension funds from crypto exposure. Officials warned that doing so would be a major mistake that deepens ties between cryptocurrency and the broader, global financial system.

It has been mentioned in the report that there has been a decline Luna’s stablecoin, USD, and the collapse of cryptocurrency exchange FTX. These two events will qualify 2022 as a “tough year for crypto.”

In the same report, officials note that most crypto companies ignore matching funds regulations and basic risk control procedures. Officials also alleged that crypto companies are notorious for misleading consumers. They cite conflict of interest, failure to disclose adequate information and fraud.

Responsibility for cryptocurrency regulation

Nevertheless, the burden of crypto regulation does not fall solely on Congress. In the statement, officials said the White House will outline priorities for digital assets Research and development Soon.

The White House’s concerns and recommendations echo those of US regulators. For example, Commodity Futures Trading Commission (CFTC) Commissioner Christine Johnson urged legislators to push for more crypto. Acquisition reviews.

Management supports accountability Technological innovations This makes service delivery cheaper, safer and more accessible. Also, safeguards ensure that new technologies are safe and useful to all, not just a few.

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