In the US, the Joe Biden administration is urging the US Congress to take swift decisions on creating a clear cryptocurrency framework. Countries across the globe are showing visible signs of crypto adoption. According to recent reports, the Biden administration is seeking rapid cryptocurrency regulation by Congress.
Biden administration worries about crypto space
In a report released Monday, the US Financial Stability Oversight Council (FSOC), a group of the country’s top financial regulators, including the US Treasury Department, urged lawmakers to reach consensus on a number of issues. This includes various decisions on how to regulate Bitcoin and other crypto assets.
The report comes at a time when Congress is investigating the stablecoin industry and other tax rules for crypto brokers. The Biden administration is also concerned about a repeat of the Terra-LUNA incident. But members of Congress say it’s still months away before appropriate legislation emerges. “Some crypto-asset businesses may have affiliates or subsidiaries that operate under different regulatory frameworks,” the report said. “No regulator can have visibility into risks across the entire enterprise.”
The report comes at a time when crypto prices are not at their best. The protracted bear market was also followed by the collapse of several crypto firms. The report also noted that there are no fundamental controls to minimize the use of excessive leverage. The FSOC also rules out abusive trade practices, customer asset segregation, cybersecurity, etc. suggests that it should be covered. The FSOC report also asks Congress to give regulators access to subsidiaries of crypto platforms. It seeks approval of the law to establish a legal framework for stablecoin issuers as well.
New Cryptocurrency Bill in the USA! What’s the Content?Statements from Yellen and Gensler
On the other hand, the statements of Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), drew attention. As we have reported as Kriptokoin.com, Kim Kardashian advertised a project called Ethereum Max on the social media platform. That’s why the SEC announced a $260,000 fine. This was also on Gensler’s agenda. Gensler said that currently many crypto projects in the ecosystem are securities. That’s why he says the laws need to be updated and that these assets should be defined as securities.
On the other hand, US Treasury Secretary Janet Yellen pointed to the growth of cryptocurrencies. She said that both individual and institutional investors poured great capital into this field. She also mentioned that we see volatility in the field, she said. Based on this instability, she stated that cryptocurrencies are one of the council’s priorities.
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