As Per US Accountability Office, authorities need a “coordination mechanism” to address crypto supervision
According to the General Accounting Office, Congress has to prioritise the development of new laws in order to solve the problems with consumer protection and financial stability that are caused by the absence of control of the cryptocurrency business.
The Government Accountability Office (GAO) of the United States of America is of the opinion that substantial regulatory holes in the cryptocurrency business, particularly those linked to spot cryptocurrency markets and stablecoins, need to be addressed through a strategy that encompasses the whole government before they pose a threat to financial stability.
However, recent occurrences, such as the collapse of FTX, have proven that there is an urgent need for regulation in the industry.
According to the General Accounting Office, Congress has to prioritise the development of new laws in order to solve the problems with consumer protection and financial stability that are caused by the absence of control of the cryptocurrency business.
There is a lack of both a comprehensive framework and a “coordination mechanism” among the federal authorities, which prevents them from efficiently supervising the industry. The following is stated in the report:
“Federal financial regulators may be better able to detect hazards and devise timely and appropriate actions if they have access to a formal coordination framework for managing blockchain-related concerns.”
According to the findings of the study, the fact that platforms that trade crypto-asset securities are now required to register and be regulated in accordance with securities laws has shown to be adequate in preventing fraud and market manipulation inside such markets.
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