The Biden administration wants federal regulators to increase their oversight and regulation of decentralized cryptocurrencies.
Spokespeople for the Biden administration made these ambitions known last week; per National Security Advisor Jake Sullivan, Director of the National Economic Council Brian Deese, Director of the White House Office of Science and Technology Policy (OSTP) and Science Advisor to the President since, and former head of DARPA Arati Prabhakar, and Chair of the Council of Economic Advisers Cecilia Rouse.
These White House officials cited some examples of major crypto volatility and collapses in 2022, and the many lives that have been affected by it, and thus should prompt increased mitigation on these currencies.
Other central banks have called tighter regulation on the industry as well, as reported by The WinePress:
SEE: Australian Securities and Investments Commission Looks To Mitigate Larger Cryptocurrencies
European Central Bank Calls For Global Cryptocurrency Regulation After FTX Fallout
According to the press release, the White House officials had this to say and what they aspire to see happen with new regulations on the market:
2022 was a tough year for cryptocurrencies. In May, a so-called “stablecoin” imploded, prompting a wave of insolvencies. Just months later, a major cryptocurrency exchange collapsed. Many everyday investors who trusted cryptocurrency companies—including young people and people of color—suffered serious losses, but, thankfully, turmoil in the cryptocurrency markets has had little negative impact on the broader financial system to date. While cryptocurrency might be relatively new, the behavior we have seen some cryptocurrency companies exhibit and the risks posed by this behavior are not. As an administration, our focus is on continuing to ensure that cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable.
At President Biden’s direction, we have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has.
First, experts across the administration have laid out the first-ever framework for developing digital assets in a safe, responsible way while addressing the risks they pose. To be sure, the technologies powering cryptocurrencies may offer ways to make payments faster, cheaper, and safer. But this framework identifies clear risks. For example, some cryptocurrency entities ignore applicable financial regulations and basic risk controls—practices that protect the country’s households, businesses, and economy. In addition, cryptocurrency platforms and promoters often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud. And there is poor cybersecurity across the industry that enabled the Democratic People’s Republic of Korea to steal over a billion dollars to fund its aggressive missile program.
Second, agencies are using their authorities to ramp up enforcement where appropriate and issue new guidance where needed. The banking agencies issued joint guidance, just this month, on the imperative of separating risky digital assets from the banking system. Agencies across government have launched—or are now developing—public-awareness programs to help consumers understand the risks of buying cryptocurrencies. We encourage regulators to continue these efforts, including those designed to address and limit financial institutions’ exposure to the risks of digital assets.
But the events of the past year underscore that more is needed. Agencies have redoubled their efforts to fight fraud, including the proliferation of false or misleading claims about crypto assets being insured by the FDIC. And while the United States is already a global leader in fighting money laundering and terrorist financing, enforcement agencies are devoting increased resources to combatting illicit activities involving digital assets. In the coming months, the Administration will also unveil priorities for digital assets research and development, which will help the technologies powering cryptocurrencies protect consumers by default.
Congress, too, needs to step up its efforts. For example, Congress should expand regulators’ powers to prevent misuses of customers’ assets—which hurt investors and distort prices—and to mitigate conflicts of interest. Congress could also strengthen transparency and disclosure requirements for cryptocurrency companies so that investors can make more informed decisions about financial and environmental risks. To aid law enforcement, it could strengthen penalties for violating illicit-finance rules and subject cryptocurrency intermediaries to bans against tipping off criminals. It could fund greater law-enforcement capacity building, including with international partners. And it could limit cryptocurrencies’ risks to the financial system by following the steps outlined by the Financial Stability Oversight Council in its recent report, including addressing the risks of stablecoins.
While congressional action in these areas would be welcome, Congress could also make our jobs harder and worsen risks to investors and to the financial system. Legislation should not greenlight mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets. In the past year, traditional financial institutions’ limited exposure to cryptocurrencies has prevented turmoil in cryptocurrencies from infecting the broader financial system. It would be a grave mistake to enact legislation that reverses course and deepens the ties between cryptocurrencies and the broader financial system.
The Administration wholeheartedly supports responsible technological innovations that make financial services cheaper, faster, safer, and more accessible. Yet to realize these benefits, new technologies need commensurate safeguards. Safeguards will ensure that new technologies are secure and beneficial to all—and that the new digital economy works for the many, not just the few. To put the right safeguards in place, we will keep driving forward the digital-assets framework we’ve developed, while working with Congress to achieve these goals.
AUTHOR COMMENTARY
He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.
Proverbs 11:15
The crypto space continues to get hammered and battered from every angle it seems. Some economists see Bitcoin and other cryptos going bust. But this has been said before many times and those predictions turned out to be false. On the other spectrum, there are many economists who are convinced that while there have been some bumps in the road, the space will only balloon in the years to come, if not even this year in fact.
Truthfully I don’t know. However, and I could be dead wrong, but I have a sneaking suspicion that cryptos and NFTs will actually get pumped up this year, largely because of the AI boom and eroding economic conditions and depreciation of the US Dollar.
Until the Federal Reserve comes out with their CBDC, then we will see what happens with cryptos and how badly they get bludgeoned; unless of course, as I have theorized, these digital assets get ported into the metaverse – a proxy to entice more people to submit themselves to it.
Federal Reserve Launches 12-Week CBDC Pilot Program With Major Banks
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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If such a disaster could be in the making, your assets are at risk and this requires your immediate attention! We need to bring the backbone of this country back to save this country. If we lose America, we lose freedom all over the world. It’s time for the World to wake.! Biden and US Administration, The World Economic Forum and its criminal allies at the United Nations and other globalist entities say this world crisis is a unique window of opportunity to seize total control over every aspect of the world, and to enslave humanity, all in the name of ‘sustainability’. They use beautiful words to hide their true intentions. But they are right about one thing: this crisis offers tremendous opportunity……..Let’s Go Brandon!!!