The White House unveiled its roadmap for regulating the cryptocurrency ecosystem in 2023. The Biden administration is specifically calling on Congress to strengthen regulators’ authority to prevent platforms from misusing customer funds.
The Biden administration is talking about regulating cryptocurrency
On Friday, the White House released its roadmap for 2023 in terms of Regulation of the cryptocurrency ecosystem. Unsurprisingly, the Biden administration advocates continued efforts to regulate the industry, in the name of the usual causes of financial stability and investor protection.
Thus, A retrospective of 2022 is done on the crises it experiencedtaking into account UST collapses and FTX fraud:
“2022 was a difficult year for cryptocurrency. In May, the so-called “stablecoin” exploded, triggering a wave of bankruptcies. A few months later, a major cryptocurrency exchange collapsed. Many ordinary investors […] Huge losses were incurred, but fortunately the turmoil in the cryptocurrency market has had little negative impact on the broader financial system so far. »
Regarding the hypothetical contagion from the crypto ecosystem to traditional finance, if it is true that internal crises should not spread, it would be interesting to remember that the beginning of the bear market was, on the contrary, It started amid the global economic downturn.
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Distinguish between technology and its use
Despite the call for more regulation, we can nonetheless point out that the White House appears to be separating between the technological base represented by the ecosystem, and the benefit from it. In fact, it is particularly emphasized that these technologies “It can offer faster, cheaper, and more secure ways to make payments“.
It is also stated in this roadmap that if cryptocurrencies “Relatively new», The risks incurred by the behavior of some actors are not. Thus, the said document is aimed at companies that revolve around this industry.
Thus logical rules are required, such as the best Transparency about associated risks and conflicts of interest. The Biden administration is also asking Congress Strengthening regulatorsin order to prevent misuse of client funds.
As it was said thatBad cyber security in the industryThe breakthroughs that allowed North Korea were born financing its ballistic program. However, on this last point, the White House forgets a priori that the hacks in question mainly concern decentralized applications that, in fact, Do not rely on its competence.
Despite all of these behaviors, it appears that The United States still lacks a clear and consistent frameworksuch as the MiCA regulation that is being implemented in the European Union.
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Source : White House
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