The Biden administration is reportedly trying to increase surveillance of the crypto market with the aim of protecting investors and preventing illegal transactions. There have been several meetings of White House officials, lawmakers and central bankers. Cryptocurrency regulation amid recent price swings of crypto assets.
Biden Administration Discussing Crypto Regulation
The Washington Post reported on Tuesday that the Biden administration, lawmakers and central bankers have held several meetings amid recent volatility in the crypto market.
White House officials were briefed by the Treasury Department earlier this month about the risks posed by cryptocurrencies, the publication cited two people familiar with the case. Federal regulators were also involved, including the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB).
Biden administration officials are studying potential “gaps” in oversight related to the cryptocurrency market, such as whether cryptocurrency can be used to finance illegal or counterterrorism activities, people said, adding:
He also discusses whether some protection is required for average retail investors buying cryptocurrencies.
Recent treasury department Unveiled Biden’s tax proposal, which includes requiring businesses to report crypto transactions in excess of $ 10K to the Internal Revenue Service (IRS) as part of a broader effort to crack down on tax evasion.
Federal regulators currently do not view volatility in the crypto market as a threat to broader financial market stability, but believe the risks are worth monitoring.
Administration officials are discussing whether crypto oversight can be extended while still allowing investors to “dogcoin to their heart’s content”, one person elaborated on the described case:
They are aware of the fact that essence and things have all kinds of risks, but they are still largely waiting and watching.
Meanwhile, central bank officials and congressional lawmakers have spoken more frequently about policies that could significantly change the crypto market. The House has passed bipartisan legislation, which has been sent to the Senate, directing federal regulators to study and clarify the rules of cryptocurrency. Bitcoin news Reported On Wednesday, federal regulators are working together to achieve this goal. According to the Federal Reserve’s vice president of supervision, Randall Quarles, the matter is of “high priority”.
Recent market volatility has increased current concerns about cryptocurrency, including the environmental impact of bitcoin mining. Government officials also think that cryptocurrency makes it easy for criminals to transfer money without detection.
The news outlet quoted Jason Furman, a senior economist in the Obama administration, as saying:
I wish we would have finished it a decade ago before it developed into a $ 2 trillion monster. Digital currencies are all cons and there is no profit – environment, crime, volatility, taking advantage of unaware investors. If there was any benefit to them, we could have debated it. But they are of no use at all.
Meanwhile, the new chairman of the US Securities and Exchange Commission (SEC) said that more Investor protection Needs and crypto exchanges need more regulation. He revealed last week that he has asked Congress to consider the issue. However, Congressman Jim Himes said that Congress is Not ready In order to take action on cryptocurrency and in his opinion, no crypto registration will be passed by Congress any time soon.
John Fagan, former director of the US Treasury’s Markets Room and now principal of Markets Policy Partners, said the Biden administration is likely to focus cryptocurrency issues on problems caused by money laundering, tax evasion and investor protection. He expects the Treasury to focus on the first two issues while the SEC later.
What do you think about the Biden administration’s push for more crypto oversight aimed at protecting investors? Let us know in the comments section below.
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