Cryptocurrency News

The Biden administration is reportedly reviewing ‘gaps’ in crypto regulation

Biden administration officials are reportedly studying “gaps” in cryptocurrency regulations following the latest fluctuations in the market, indicating that new regulations may be proposed soon.

People familiar with the case told The Washington Post that White House officials are studying whether digital assets such as bitcoin (B T c) Can be used to finance terrorist activities. They are also considering whether retail investors should be protected from excessive price fluctuations of digital asset markets.

Bitcoin’s brief collapse of less than $ 30,000 last week triggered a wave of sales panic in the form of digital asset markets Decreased value by more than $ 1 trillion in just ten days. At the peak, the digital asset market had nearly halved between mid-April and mid-May.

A new proposal from the United States Treasury Is required Cryptocurrency holders were to report all transfers over $ 10,000 to the Internal Revenue Agency One of the many catalysts behind the decline. The Biden administration’s plan to double the IRS’s workforce over the next decade was also of concern to investors who feel the United States is quickly losing its competitiveness on matters related to taxation and digital asset markets.

The Washington Post claimed that currently, federal lawmakers believe wild swings in crypto prices could threaten broader financial-market stability, although the risks are worth monitoring. The unnamed source said, “They are aware of the fact that essence and things have all kinds of risks, but they are still in a wait-and-see pose.”

At its peak, the cryptocurrency market was Collectively worth $ 2.5 trillion. More than, Which is small compared to the broader financial system. However, as crypto continues to grow, the acceptable risk that the government considers acceptable may change.