Biden Admin Roadmap Cryptocurrency Risks Cryptocurrency – Daily news 98
Biden Admin Roadmap Cryptocurrency Risks Cryptocurrency – Daily news 98
The Biden administration has released an official blog detailing its roadmap for mitigating cryptocurrency risk.
The roadmap begins by citing the implosion of LUNA/Terra in 2022 and the subsequent catastrophic contagion within the industry that led to various bankruptcies. The bankruptcy of FTX is included in this reference, stating that “many ordinary investors who trusted cryptocurrency companies, including young people and people of color, suffered severe losses, but thankfully the turmoil in the cryptocurrency markets have had little negative impact on the broader financial system to date.
According to the roadmap, the administration’s goal is to ensure that cryptocurrencies cannot undermine financial stability, protect investors, and hold bad actors accountable. To achieve this, the roadmap says experts from across government have laid out a framework for developing digital assets in a safe and responsible manner while addressing the risks they pose.
“Under the leadership of President Biden, we have spent the past year identifying the risks of cryptocurrencies and taking action to mitigate them using the powers available to the executive branch,” the roadmap reads.
It then describes how some cryptocurrency entities ignore financial regulations and risky practices. It is also alleged that cryptocurrency platforms and promoters often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud.
“Agencies are using their powers to strengthen enforcement where necessary and issue new guidance where necessary,” the message read. “Banking agencies issued joint guidance this month on the imperative to segregate risky digital assets from the banking system. Government agencies have launched – or are developing – public awareness programs to help consumers understand the risks of buying cryptocurrencies.
However, this is not enough given the events of the past year, according to the roadmap. Accordingly, the administration will reveal priorities for new research devoted to digital assets and development, “that will help the technologies powering cryptocurrencies protect consumers by default.”
The message also details the administrations’ belief that Congress must step up its efforts by expanding the powers of regulators, strengthening transparency and disclosure requirements, funding increased law enforcement capacity, and limiting the risks of cryptocurrencies for the financial system. It is prudent to note that Congress should not give the green light to traditional institutions such as pension funds to dive headlong into cryptocurrency markets, as this would deepen the ties between cryptocurrencies and the financial system. in the broad sense and would increase systemic risks.
The roadmap is the latest in bitcoin regulation outside of Washington, with the Biden administration issuing the “Executive Order on Ensuring Responsible Development of Digital Assets” in March 2022 and the “Climate Implications and energy of crypto-assets in the United States”. States”, September 2022 report respectively.
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