White house publishes Timetable for reducing cryptocurrency risks - regulation
White house publishes Timetable for reducing cryptocurrency risks - regulation
The White House has published a “Roadmap to reduce the risks of cryptocurrencies”. The timetable calls for authorities to "increase the enforcement" and "to strengthen its efforts" to regulate the crypto sector. It also finds that the legislation should not give mainstream institutions "to dive into the head overall in cryptocurrency markets".
"The government's timetable to reduce the risks of cryptocurrencies"
The White House published on Friday as part of the National Economic Council (NEC), an executive office of the President (EOP) to advise the President in the US and Global Economic Policy, a blog post entitled "The government to reduce the risks of cryptopoxics".
The roadmap was written by four advisors of the White House: Brian Deese, Director of the NEC, Arati Prabhakar, Director of the Office of Science and Technology Policy (Ostp), Cecilia Rouse, Chair of the Council of Economic Advisers (CEA), and Jake Sullivan, National Security Advisor. The CEA has the task of providing objective economic advice on the formulation of both national and international economic policy, while the OSTP advises president in all questions in connection with science and technology.
The advisors of the White House explained:
At the instructions of President Biden, we spent the past year to identify the risks of cryptocurrencies and to act with the help of the executive to reduce them.
"Experts from all over the administration have designed the very first framework for the development of digital assets in a safe and responsible way and at the same time tackled the associated risks," they added.
The framework identifies a number of risks, including crypto companies that ignore applicable financial regulations and fundamental risk controls, mislead consumers, have conflicts of interest, provide insufficient disclosure and commit open fraud. In addition, the authors claimed that "cyber security in the entire industry is bad", which has made North Korea "stealing over a billion dollars to finance its aggressive rocket program".
While they encouraged the regulatory authorities to "continue to use their authorities in order to increase the enforcement if necessary and to issue new guidelines," emphasized the roadmap authors:
The events of the past year underline that more is needed. The authorities have doubled their efforts to combat fraud ... The law enforcement authorities turn more resources to combat illegal activities in connection with digital assets.
"In the coming months, the government will also reveal priorities for research and development of digital assets that will help to protect the technologies that drive cryptocurrencies," they revealed.
The congress must increase its efforts to regulate crypto
The Roadmap also calls on the congress to “reinforce its efforts” in regulating the crypto sector, such as: B. the expansion of the powers of the regulatory authorities to prevent the abuse of customer assets and to reduce conflicts of interest.
The advisors of the White House suggested that the congress also strengthen the transparency and disclosure obligations for cryptocurrency companies that could increase punishments for violations of the rules of illegal financing and prohibit crypto intermediaries to give criminal information. However, they warned:
The legislation should not give mainstream institutions such as pension funds to immerse themselves in the head over cryptocurrency markets.
The advisors said that the limited commitment of traditional financial institutions from Krypto prevented turbulence on the cryptom market last year.
Finally, they emphasized:
The government supports the main heart of responsible technological innovations that make financial services cheaper, faster, safer and accessible.
Nonetheless, the Roadmap authors found that "new technologies require appropriate security precautions to implement these advantages" and explained: "To take the right safety precautions, we will continue to drive the framework we developed for digital assets and work with the congress to achieve these goals."
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