The White House recently released a “Roadmap to Mitigating Cryptocurrency Risks,” urging Congress to step up efforts to regulate the cryptocurrency market and calling on authorities to “strengthen enforcement where appropriate.”
The four White House advisers, led by National Economic Council (NEC) Director Brian Deese, mentioned: “Under President Biden’s direction, we have spent the past year identifying the risks of cryptocurrencies and using the powers that the executive branch has to take action. act to mitigate these risks.”
The statement said Congress “should expand the powers of regulators to prevent misuse of client assets and mitigate conflicts of interest.” In addition, other recommendations the White House made to Congress in the statement include: strengthening transparency and disclosure requirements for cryptocurrency companies, increasing penalties for financial violations, and working more closely with international law enforcement partners.
The officials said that Congress should not “give the green light for mainstream institutions such as pension funds to get involved in the cryptocurrency market” when enacting cryptocurrency legislation. mistake”.
While the statement made no direct reference to the ill-fated UST and the FTX debacle, the White House adviser called 2022 a “difficult year for the cryptocurrency market,” adding that “the implosion of a stablecoin” and ” The collapse of a major cryptocurrency exchange,” triggering a wave of bankruptcies.
Some cryptocurrency companies disregard applicable financial regulations and basic risk controls. Additionally, cryptocurrency platforms often mislead consumers, have conflicts of interest, fail to disclose adequately, or engage in blatant fraud.
The four officials said in a statement that the Biden administration will announce “digital asset research and development priorities in the coming months that will help support the protection of consumers by default in cryptocurrency technology” to ensure Emerging technologies are safe and beneficial for all.
They added that experts across the U.S. government have developed an updated regulatory framework, hoping to ensure the safety and security of digital asset transactions while addressing the risks posed by cryptocurrencies.
In order to avoid the next FTX incident and maintain financial stability, the US government has clearly realized the importance of cryptocurrency regulation. Analysts at cryptocurrency research team MICA Research commented
The intention of the White House to issue this statement is to urge the legislative process of Congress. The purpose is to strengthen the government’s supervision of cryptocurrencies through regulatory laws dedicated to cryptocurrencies, rather than applying traditional financial regulations to the cryptocurrency market. The US government wants to What is needed is stricter proprietary laws to achieve regulatory goals while reducing costs.
