- Biden’s cabinet members, Brian Deese, Arati Prabhakar, Cecilia Rouse, and Jake Sullivan, posted a letter on the White House blog outlining the roadmap the current US administration should take to mitigate the cryptocurrency risks.
- White House officials are calling on Congress to “intensify its efforts” on cryptocurrency regulation to expand regulators’ authority to police the crypto industry.
Since crypto assets began to gain popularity, there is something in which States around the world began to put their efforts into creating regulations for this type of asset.
Regulations have been varied; from fully adopting cryptocurrencies as in the case of El Salvador, some permissive ones, which do not recognize them as money but do allow their trade as investment assets, as is the case in Mexico, and finally those that have totally prohibited them as is the case of China.
Nevertheless, Regardless of the position of the governments, the truth is that they all seek something in common, to protect citizens.
And right under this scoop is that heOfficials Brian Deese, director of the National Economic Council; arati prabhakardirector of the White House Office of Science and Technology Policy; Cecilia Rose, President of the Council of Economic Advisers; and the national security adviser, Jake Sullivan, published a letter in the white house blog in which they point out the roadmap that the Biden administration must take to mitigate the risks of cryptocurrencies.
Officials Seek to Mitigate Risks in the Crypto Ecosystem
For almost all of us who are immersed in the crypto ecosystem, it is not unknown that some regulators in the United States are looking to establish stricter laws around cryptocurrencies, especially after the fall of the Terra stablecoin, UST, which in turn led to the fall of the LUNA cryptocurrency, but what put the last nail in the coffin was the collapse and bankruptcy of the FTX exchange.
These events caused hundreds of people to see their funds disappear and millions of dollars were wiped out of the crypto ecosystem, which is why White House officials are calling on Congress to “intensify its efforts” on cryptocurrency regulation to expand regulators’ authority to police the crypto industry.
“While cryptocurrencies may be relatively new, the behavior we have seen some cryptocurrency companies exhibit and the risks this behavior poses are not..” the officials noted referring to the collapse of terra and FTX, adding “As an administration, our focus is to continue to ensure that cryptocurrencies cannot undermine financial stability, protect investors, and hold bad actors accountable.”
What do the officials propose?
The officials pointed out that under the direction of President Biden, they have spent the last year identifying the risks that cryptocurrencies entail and acting to mitigate them using the powers that the Executive Branch has and it is with this knowledge that they have developed a series of recommendations for Congress. .
Among the points that Deese, Prabhakar, Rouse, and Sullivan wrote to Congress are:
- Congress should expand the powers of regulators to prevent the misuse of customer assets.
- Congress could also strengthen transparency and disclosure requirements for cryptocurrency companies so investors can make more informed decisions about financial and environmental risks.
- Strengthen penalties for violating illicit financing rules and subject cryptocurrency intermediaries to bans against criminals.
- Do not allow major institutions, such as pension funds, to fully immerse themselves in the cryptocurrency markets.
The officials closed their letter by stating that they support any technological innovation that makes financial services cheaper, faster, safer and more accessible, however it is necessary that these be safe and beneficial for all, and that is why stricter regulation is necessary. .
Finally they pointed out that In the coming months, the Administration will “unveil priorities for digital asset research and development, which will help the technologies that power cryptocurrency protect consumers by default.
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