The officials ask Congress to intensify its efforts on crypto regulation to prevent the misappropriation of consumers’ assets and the emergence of conflicts of interest.
Four high-ranking US government officials working in the White House have issued a call to action to the US Congress, urging it to “step up its efforts” in the area of crypto regulation.
The officials reportedly stated in a letter that Congress should expand the authorities of regulators to prevent the misuse of customers’ money and to avoid conflicts of interest.
Other suggestions for Congress were included in the statement. These suggestions included strengthening the requirements for transparency and disclosure for cryptocurrency firms, strengthening the penalties for violations of rules pertaining to illicit finance, and working more closely with international law enforcement partners.
The officials also indicated what Congress should not do in terms of designing new crypto regulations, including greenlighting mainstream institutions, including pension funds, to leap headfirst into cryptocurrency markets. This was one of the things that were mentioned by the officials.
Officials from the White House have issued a warning that doing so would be a “grave mistake” that might strengthen the connections between cryptocurrencies and the larger financial system.
The following is an excerpt from what they wrote: “Some cryptocurrency firms flout applicable financial regulations and basic risk controls.” Additionally, cryptocurrency platforms frequently mislead customers, have conflicts of interest, fail to make proper disclosures, or even perpetrate fraud in its most blatant form.
“Safeguards will ensure that new technologies are secure and beneficial to all – and that the new digital economy works for the many, not just the few.”
Recently, more than 28 technology organizations that build open-source projects sent a request to Congress, asking that the blockchain area be regulated in a way that protects the privacy of consumers.
