• Four senior White House officials posted a blog criticizing Congress for failing to enact cryptocurrency regulations.
• The White House called for lawmakers to expedite their efforts to develop a crypto regulatory framework, including increasing transparency, disclosure requirements, and assisting law enforcement.
• However, crypto regulations have not been the priority of President Joe Biden either.
Yesterday, four senior White House officials posted a blog voicing their frustrations over Congress‘ inactivity in enacting cryptocurrency regulations. The blog highlighted the need for lawmakers to expedite their efforts in developing a comprehensive national crypto regulatory framework, as the current lack of such a framework could lead to further exploitation of the crypto sector by bad actors.
The White House outlined several steps that Congress should take in order to combat fraud and protect consumers in the crypto space. These included increasing the powers of regulatory agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as increasing transparency and disclosure requirements for cryptocurrency companies. They also recommended that Congress should assist law enforcement by increasing funding, toughening penalties for existing finance rules, and improving those rules to penalize intermediaries. Furthermore, the White House suggested enacting legislation to regulate stablecoins.
Unfortunately, President Joe Biden’s administration has not given priority to crypto regulations either. The note apparently refers to the House Republican leadership’s recent announcement of the new Subcommittee on Digital Assets, Financial Technology and Inclusion, which could lead to the loosening of regulations at this critical juncture.
The senior White House officials warned that the lack of a comprehensive crypto regulatory framework could put consumers at risk, and asked Congress to take action in order to protect their interests. They urged Congress to take a more proactive approach to crypto regulations and to take immediate steps to increase transparency, disclosure requirements, and to assist law enforcement in order to protect consumers. It remains to be seen if Congress will heed the White House’s call and enact the necessary regulations to protect the crypto sector.