2022 was a difficult year for the crypto market, with several companies experiencing insolvency and collapse.
The Biden Administration has taken notice of the risks posed by this behavior and is taking steps to ensure that cryptocurrencies do not undermine financial stability and protect investors from bad actors.
US President Joe Biden to Regulate Crypto
The 46th and current president of the United States and his administration have been working on framework for developing cryptocurrencies in a safe and responsible manner, while also addressing the risks they pose. This includes identifying issues such as companies ignoring financial regulations and basic risk controls, as well as poor cybersecurity in the industry.
Agencies are also ramping up enforcement and issuing new guidance to address these issues.
In addition to the actions taken by the Biden Administration, Congress is being urged to step up efforts to prevent misuses of customers’ assets and to mitigate conflicts of interest. This includes expanding regulators’ powers, strengthening transparency and disclosure requirements, and funding greater law enforcement capacity building.
Still, the Administration has warned against legislation that would allow mainstream institutions, such as pension funds, to heavily invest in the crypto market. They believe this could worsen risks to investors and the financial system.
Overall, the US President Joe Biden supports responsible technological innovations that make financial services cheaper, faster, safer, and more accessible. His administration will continue to work towards putting the right safeguards in place to ensure that the new digital economy works for everyone.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.