Biden administration urges speed up of crypto regulation as recession fears rise

In the United States, President Biden’s administration has urged the country’s Congress to pass laws that will clarify how crypto assets should be regulated amid increasing fears of a global recession, reports CryptoNews.

The group of financial regulators comprising the US Financial Stability Oversight Council, had issued a report, calling on politicians to reach an agreement on crypto-related matters, including the way in which it is sold on the spot market.

The report follows a number of major crypto and worldwide events, including the massive collapse of the Terra/LUNA ecosystem, a number of crypto companies going bankrupt in the subsequent fallout, Russia’s invasion of Ukraine, Congress discussing tax rules for the stablecoin industry, as well as growing fears of a global recession.

It also comes after the week that saw stock falling due to recession fears, the Dow Jones dropping into bear territory, as well as the British pound sliding to an all-time low against the dollar.

The report titled ‘Report on Digital Asset Financial Stability Risks and Regulation’ “reviews financial stability risks and regulatory gaps posed by various types of digital assets and provides recommendations to address such risks,” said the press release.

The report stated that it identified three gaps in the US crypto regulation landscape:

  • the spot markets for crypto that are not securities are subject to limited direct federal regulation
  • crypto businesses do not have a consistent or comprehensive regulatory framework and can engage in regulatory arbitrage
  • a number of crypto asset trading platforms have proposed offering retail customers direct access to markets by vertically integrating the services provided by intermediaries such as broker-dealers or futures commission merchants

Secretary of the Treasury Janet Yellen called the report “an important contribution” to the reports produced by the Treasury and other institutions as part of Biden’s executive order.

Read more.

© 2023 Blockchain Ireland