October 2, 2022

Treasury expected to call for cryptocurrency regulation after Biden review

A possibility yet known whether regulations will affect privacy or even other freedoms.

In March, President May well Biden signed an executive  order requiring an extensive review of the cryptocurrency business . People familiar with the matter told  The Washington Post   the fact that Treasury Department has ready reports, and that the reviews recommend major regulation of the cryptocurrency industry.

The reports note that cryptocurrencies pose an economic danger in several areas. The evaluation concluded that crypto is not a “ threat” to the balance of the financial system at large, but that could change abruptly.

According to the sources, who also spoke to The Post upon condition of anonymity, one of the reports focuses on stablecoins, a kind of digital currency whose value is pegged to the money. Earlier this year, a stablecoin known as Terra collapsed, resulting in a downturn in the broader crypto market.

As lawmakers consider government rules for the digital possessions sectors, it is pushing to become regulated by the Commodity Futures Trading Commission (CFTC), instead of the Securities and Exchange Fee, which is considered stricter. Currently, there are three bipartisan expenses in Congress that favour the CFTC as the limiter of the crypto sector.

The Treasury can be yet to weigh within on the issue of the regulator of the industry.

“ Treasury is trying to create the analytical basis pertaining to very strong oversight of this industry of finance, ” one of The Post’s sources said. “ They’re also hoping that will with this kind of report, it becomes hard to have regulations that will back off of tough oversight of the industry. This framework would serve as a benchmark, to say ‘ Let’s become focused on these risks instead of be carried away with the technology and industry promises. ‘”

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