![]() And there is poor cybersecurity across the industry that enabled the Democratic People’s Republic of Korea to steal over a billion dollars to fund its aggressive missile program. In addition, cryptocurrency platforms and promoters often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud. For example, some cryptocurrency entities ignore applicable financial regulations and basic risk controls-practices that protect the country’s households, businesses, and economy. But this framework identifies clear risks. To be sure, the technologies powering cryptocurrencies may offer ways to make payments faster, cheaper, and safer. As an administration, our focus is on continuing to ensure that cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable.Īt President Biden’s direction, we have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has.įirst, experts across the administration have laid out the first-ever framework for developing digital assets in a safe, responsible way while addressing the risks they pose. While cryptocurrency might be relatively new, the behavior we have seen some cryptocurrency companies exhibit and the risks posed by this behavior are not. Many everyday investors who trusted cryptocurrency companies-including young people and people of color-suffered serious losses, but, thankfully, turmoil in the cryptocurrency markets has had little negative impact on the broader financial system to date. Just months later, a major cryptocurrency exchange collapsed. In May, a so-called “stablecoin” imploded, prompting a wave of insolvencies. Get Involved Show submenu for “Get Involved””īy Brian Deese, Arati Prabhakar, Cecilia Rouse, and Jake SullivanĢ022 was a tough year for cryptocurrencies.The White House Show submenu for “The White House””.Office of the United States Trade Representative.Office of Science and Technology Policy.Executive Offices Show submenu for “Executive Offices””.Administration Show submenu for “Administration””.“I will say, on Russia, in particular, the use of cryptocurrency we do not think is a viable workaround to the set of financial sanctions we’ve imposed across the entire Russian economy and, in particular, to its central bank. ![]() There was no mention of particular verticals like DeFi or NFTs, either.Ī particular concern among some in the crypto industry was that the potential use of cryptocurrencies by wealthy Russian elite to evade sanctions would prompt a crackdown, but one unnamed senior official on a background press call seemed to downplay this possibility. ![]() The White House’s communications regarding the EO largely seems to avoid calling out any particular coins or projectsm with the exception of noting the price volatility of Bitcoin specifically. In recent months, Warren has criticized the industry, drawing particular attention to the environmental impacts of cryptocurrencies and the investor risks associated with lax regulation of so-called stablecoin issuers and other players in the DeFi ecosystem. While crypto investors may generally breathe a sigh of relief, fellow lawmakers like Elizabeth Warren who have been highly critical of the crypto space may be less satisfied. Support Technological Advances and Ensure Responsible Development and Use of Digital Assets.Promote Equitable Access to Safe and Affordable Financial Services.Leadership in the Global Financial System Leadership in Technology and Economic Competitiveness to Reinforce U.S. Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets.and Global Financial Stability and Mitigate Systemic Risk ![]() The press release lays out seven major goals of the executive order with added detail: “The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk,” a fact sheet issued by the White House reads. The order essentially lays out a broad strategy for how the government plans to balance consumer protection while ensuring that the United States continues to be a space for innovation in the sector.įor those in the crypto sector concerned about aggressive government intervention, the order’s language seems to signal that the Biden White House is uninterested in sweeping near-term reforms and is instead merely focused on ensuring that agencies are on the same page in researching and observing the national security implications of the crypto industry. The Biden White House showed off a new executive order on Wednesday regarding the regulation of cryptocurrencies.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |