White House has issued an administration roadmap to reduce the risks related to cryptocurrency.
Biden Administration will develop a cryptocurrency legal framework in the coming months.
The year 2022 has been a terrible year for the crypto market, with investors facing severe lows and the collapse of the LUNA/Terra, and the bankruptcy of significant corporations like FTX leading to the crypto facing bears, and despite all of this loss, many still have faith in the cryptocurrency market.
For this, the Biden Administration has published an official blog outlining its roadmap for mitigating cryptocurrency threats. In addition, the White House post mentioned the administration’s creation of the first-ever framework for building digital assets.
White House’s Roadmap on Crypto Risks
According to the roadmap, the Administration’s priority is to ensure that cryptocurrencies do not threaten financial stability, protect investors, and hold bad actors accountable. In the roadmap, experts from throughout the administration have put out a framework for creating digital assets securely and sustainably while addressing the risks they pose.
Furthermore, the roadmap states that under President Biden’s direction, they have spent the past year identifying the risks of cryptocurrencies and devising ways to mitigate them using the executive branch’s authorities, and it goes on to describe the entities that disregard financial regulations and risk practices.
They further said that cryptocurrency platforms and advocates frequently mislead users, have conflicts of interest, fail to disclose adequately or perpetrate massive fraud.
Furthermore, the statement expresses that some agencies ramp up enforcement where appropriate and issue new guidance where needed, however, the events of the past year highlight the need for more, and the administration notes its intention to continue driving forward the digital assets framework they will develop in collaboration with Congress.
In addition, the four officials stated that the Biden administration would be revealing properties for digital asset research development in the next months, which will enable the technologies powering cryptocurrencies to protect consumers by default.
They claimed that
“Safeguards will ensure that new technologies are secure and advantageous to all and that the new digital economy benefits the many rather than the few.”