The United States Government Has Called for Crypto Regulation

Experts and government officials have pinpointed the dangers that come with digital assets. U.S. authorities have warned that digital assets pose a security risk in a recent study. These dangers threaten the stability of the American financial system. 

The Study Contends Unless “Proper Regulation” Is Put in Place

On March 9, 2022, President Joe Biden issued an E.O. In the Order, the phrase “Ensuring Responsible Development of Digital Assets” was used. The Financial Stability Oversight Council (FSOC) has now addressed this issue. The governing body has released a 124-page report on digital assets. 

In 2010, Congress and the Senate approved the Dodd-Frank Wall Street Reform and Consumer Protection Act. This created room for the establishment of FSOC. In September, the White House released a “Comprehensive Framework” for crypto regulation and development. 

The head of the SEC, Gary Gensler, has shared his thoughts on the findings. He argues that many crypto exchanges are involved in securities transactions since most crypto tokens are securities. As a result, they need to file paperwork with the SEC.

Convergence Of Regulatory Authorities

In recent months, authorities in the United States have ramped up their attempts to regulate digital assets. Commodity Futures Trading Commission, The Securities and Exchange Commission, and The United States Department of the Treasury are all examples. The effects of this “regulation by enforcement” have been undesirable.

Secretary of the Treasury Janet Yellen issued a comment about the report. She said that in the previous several years, the quantity and variety of digital assets had increased substantially. She continued by saying that they had gotten a significant amount of interest and funding. 

A mix of individual and institutional investors contributed to these sums and their subsequent interests. She claims that despite this, the last year, in particular, has been marked by extreme instability and shocking events. She stressed that the Council had prioritized the safeguarding of digital assets. 

During their February meeting, members identified this as one of their top priorities for the year. 

According to CoinGecko, the total market value of all cryptocurrencies is now $981 billion. This figure represents a decrease of $1.24 trillion. This is from the $2.2 trillion that was recorded in the same period in October 2021.

The Report Points To A Few Key Issues

The report highlights several problems, including the heightened volatility within the crypto-asset ecosystem. Inadequate safeguards against run risk and over-leverage are examples of this. 

Concerns arose because of the speculative nature of the price increases rather than any actual practical applications in the economy. 

Consistent, widespread decreases were also highlighted as a serious problem. The article discussed the Crypto tokens linked to companies with shady backgrounds and murky financials. 

The research also highlights the dangers of centralizing essential services and vulnerabilities.

Leave a Reply

Your email address will not be published.


Coins Capital Review, – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is scam or legit” and much more! GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]

Belgium Regulator Sets To Impose New Crypto Ads Rules

The Belgium government has mandated that every firm offering crypto advertisements should register with it before launching any campaign. Henceforth, any crypto advertisement without the government’s backing would be treated as an offense with heavy consequences. According to the report, the Financial Services and Markets Authority (FSMA) of Belgium recently announced that every potential crypto […]