Biden’s government has pushed for Congress to form and pass laws on a system able to regulate the crypto space. Many countries are adopting crypto. However, Bitcoin and other cryptocurrencies have faced a crisis for several months, with inflation crawling in. The government states that the delays on Capitol Hill on passing the laws could have dire risks to investors.
The Much-Needed Clarity
Earlier this year, around March,
“The US Congress introduced 35 bills focused on Crypto Policy. Topics included cryptocurrency regulation, applications of blockchain technology, and central bank digital currencies.”
The US Congress introduced 50 digital assets for blockchain rules. According to the CBDC, these bills and resolutions would help govern cryptocurrency taxation, regulation, and any other blockchain-related tech.
The US Financial Stability Oversight Council (FSOC) reported on Monday. In the report, the FSOC is pushing Congress to agree on various topics. Among the topics expected is the issue of controlling the spot market for cryptocurrencies such as bitcoin.
According to the official report;
“Some Crypto asset businesses may have affiliates or subsidiaries operating under different regulatory frameworks. No single regulator may see the risks across the entire business.”
Congress has focused on the stablecoin part and other tax laws important to crypto brokers.
Warnings Causing the Push for Cryptocurrency Regulations
Based on the current Coinbase issues, the customer’s money would be blocked if the company went bankrupt. Thus, US lawmakers must create laws that can fix such a problem. Additionally, the system created should be in that crypto firms keep customer assets confined.
Additionally, Biden’s officials show a worry that the Terra-LUNA disaster may happen again. However, the officials insist that it will take several months to pass the vital laws.
The push for controlling the crypto space comes against a warning about the central bank’s financial policy. It is a warning that the bank could push the world into a recession. In addition, the United Nations Conference on Trade and Development (UNCTAD) report cements the concerns. According to the report, the world’s financial growth is likely to go down by 2.5% in 2022 and up to 2.2% In 2023.
Such a move would affect crypto, as investors would use it to hedge against the currency’s decrease.
SEC’s Take on the Move to Regulate Cryptocurrency
The Securities and Exchange Commission (SEC) is pushing for power over the crypto space. In addition, the SEC wants to identify digital assets as securities. This would show a giant step backward for the crypto industry.
However, the SEC supports the government in pushing for the rules.
“SEC chairman said that he would support the decision of the US Congress on the regulation of crypto and equate all crypto coins to the stocks. He also calls for crypto exchanges in the US to obtain a license, like other stock exchanges.”
FSOC further pushes Congress to establish cyber security rules, the seclusion of customer assets, and other issues.