White House report says it would a ‘grave mistake’ to deepen ties between crypto, broader financial system

A new White House report offers more insight into the minds of the executive branch of the U.S. federal government when it comes to cryptocurrency regulation.

The authors of the Jan. 27 report, a member of President Joe Biden’s economic team, suggested Congress was not acting quickly and efficiently when it came to providing regulatory clarity to the public. I’m here.

The report’s authors are Brian Dees, Director of the National Economic Council, Arathi Prabhakar, Director of the White House Office of Science and Technology Policy, Cecilia Rouse, Chair of the Economic Advisory Board, and National Security Advisor Jake Sullivan made a phone call. It calls for Congress to “expand the powers of regulators to prevent misuse of client assets and mitigate conflicts of interest.”

The report added that legislation should be enacted to separate cryptocurrency banking from traditional banking. Glass-Steagall Act In 1933, the commercial bank and the investment bank were separated.

Additionally, the report urged Congress to take action to mitigate the types of risky behavior that it did not name. holding billions of dollars in deposits Some of the most vicious threat actors in the industry, including FTX and Genesis.

Congress may also tighten transparency and disclosure requirements for cryptocurrency companies to help investors make more informed decisions about financial and environmental risks.

Following a major industry-wide collapse, from stablecoin TerraUSD (UST) to exchange FTX, the report says billions of institutional and retail money has evaporated and won back to investors. It repeatedly states that it is causing irreparable damage.

Many everyday investors who trust cryptocurrency companies, including young people and people of color, have suffered severe losses.

The White House also said the report has also helped fix a “surge in false or misleading claims that crypto assets are insured by the Federal Deposit Insurance Corporation.”

Reiterating the oft-cited White House allegation that crypto-cybercrime is being used to fund North Korea’s ballistic missile programme, he said, “Poor cybersecurity across the industry is causing the democratic people of the DPRK The Republic was able to steal more than $1 billion to fund offensive missile programs.” We warn you to pay attention to potential cryptocurrency cybercrime.

Nonetheless, the administration has provided support and guidance to law enforcement agencies in its report, stating: Assist law enforcement agencies. [Congress] It could increase penalties for violating illegal financial regulations and ban cryptocurrency intermediaries from providing information to criminals. “

The report concluded by warning Congress that it would ultimately be “a grave mistake to enact legislation that would reverse course and deepen the relationship between cryptocurrencies and the wider financial system.”

Many of these issues are not unique to the cryptocurrency industry, but innovation and creativity in the sector should ultimately be mixed with increased regulatory protection and scrutiny.

The administration wholeheartedly supports responsible innovation in making financial services cheaper, faster, safer and more accessible. […] Safeguards ensure that new technologies are safe and beneficial to all, and that the new digital economy works for the many, not just the few.

Posted in: Featured, Regulation

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