- The Biden Administration says that it has assembled experts to lay out the “first-ever framework for developing digital assets in a safe, responsible way while addressing the risks they pose.
- Government agencies are ramping up enforcement where appropriate, without naming any specific firm or coin.
The Biden Administration has unveiled a strategy for addressing the many hazards linked with the rise of cryptocurrencies and digital assets.
Biden’s officials said they’ve spent the last year assessing the hazards of cryptocurrencies and attempting to minimize them using the authority that the Executive Branch has in a new announcement.
According to the officials, the numerous occurrences of 2022, including the implosion of Terra (LUNA) and the high-profile failure of crypto exchange FTX, highlight the necessity for a coordinated approach to maintain track of crypto.
According to the Administration, it has established a team of specialists to create the first-ever framework for producing digital assets in a secure, responsible manner while addressing the threats they offer.
Officials also state that government agencies are now increasing enforcement where necessary, without mentioning any one company or coin.
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.
The White House advises Congress not to allow conventional institutions, such as pension funds, to plunge headlong into crypto assets. While the Administration acknowledges that it encourages financial services innovation, safeguards must first be put in place.
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.
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