White House says ‘digital assets pose serious dangers’ after implementing a crypto framework
At a time when digital assets are rising in popularity, the administration of President Joe Biden is advocating for greater regulation and further legislation.
In a series of studies released on Friday, September 16, detailing its first-ever framework for crypto regulation in the United States, the White House referred to the volatility of cryptocurrencies and a recent decrease that has caused concerns across the crypto landscape.
Notably, the framework specifies how the financial services industry should alter its practices to make borderless transactions simpler, as well as how to combat fraud in the space filled by digital assets.
A statement issued by the Biden administration states: There are real dangers associated with investing in or buying digital assets for the general public and for traditional enterprises. The present global market capitalization of cryptocurrencies is around one-third of its peak in November 2021.”
The new recommendations depend on existing agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, no directives have been given as of yet. However, the long-awaited direction from Washington has fascinated the crypto industry as a whole as well as investors in this new asset class.
The White House’s new framework for regulating cryptocurrencies includes a section that focuses on removing illegal activity in the market, and the proposed regulations seem to be substantive.
According to a White House fact sheet, the President “will examine whether to call upon Congress to alter the Bank Secrecy Act, anti-tip-off regulations, and prohibitions against unlicensed money transmission” to apply expressly to digital asset service providers, such as digital asset exchanges and nonfungible token (NFT) platforms.
Among other suggestions, the new studies urge that financial regulators crack down on unlawful activity and “address present and emerging threats.”