Crypto is gaining more and more followers all over the world. Despite the reluctance of some, many countries strongly believe in the future of digital currency. The proof, they invest time and work in its regulation. According to the Biden administration, it is becoming more than urgent to look into the subject for political reasons.
A growing interest in crypto, and not just in the USA!
In its early days, cryptocurrency was primarily of interest to investors. Today, everyone has their say. More and more ordinary citizens are indeed starting to invest in the field, increasing the global interest in digital currency every day.
In countries with clear cryptocurrency regulations, exchanges are controlled by the relevant authorities, which promotes people’s trust in cryptocurrency. In countries that do not yet apply a clear policy on the subject, scammers are gaining more ground. Investors are also taking advantage of this lack of regulation to make more profits on the backs of the government.
Aware of this growing interest in cryptocurrencies, the Biden administration is putting pressure on Congress. In order to regulate the crypto market, it is indeed asking Congress to take a quick decision on the subject.
It was through a report published on Monday that the President’s administration expressed its opinion. Through the US Financial Stability Supervisory Board (FSOC), the Biden administration is asking lawmakers to reach consensus on the topic of cryptocurrencies. The main objective of this consensus is to regulate bitcoin as well as the other main cryptocurrencies traded on the market.
Clear regulations to protect investors from another stablecoin drop
Recent incidents on stablecoins (notably the Terra-LUNA affair) have strongly influenced this decision by the US government. According to the Biden government, it is essential to establish a clear legal framework on cryptocurrencies in order to alleviate any problems in the future. However, this legislation still seems distant given all the points to be taken into account.
In his report, the FSOC indeed stresses that a regulation could take months before being adopted. The reason is simple: several points must be addressed. Because many crypto companies operate through several subsidiaries, it would be necessary, for example, to establish a single regulation that covers all types of risk. Congress will also have to address abusive business practices, the separation of customer assets from company assets, and cybersecurity. Hence the colossal work that remains to be done to really establish complete and effective legislation.
Congress has a lot of work to do in response to requests from the government and crypto users. In this period when the cryptosphere is undergoing rise and fall, it is high time to regularize exchanges as well as monetary interactions. To be continued…
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