Biden Administration Releases Plan to Fight Crypto Fraud and Safeguard Investors
The White House unveils "plan to address cryptocurrency risks," urging authorities to increase enforcement and for Congress to regulate the crypto industry. The roadmap cautions against allowing mainstream institutions to blindly invest in crypto markets.
On Friday, White House senior officials issued a statement "The Administration's Roadmap to Mitigate Cryptocurrencies' Risks." The official blog affirmed, "While cryptocurrency might be relatively new, the behavior we have seen some cryptocurrency companies exhibit and the risks posed by this behavior are not. As an administration, our focus is on continuing to ensure that cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable.”
As part of the same report, the Biden administration has spent a year recognizing cryptocurrency risks and developing strategies to address them using executive powers. Entities that violate financial rules and engage in unlawful practices are described in the report. It also highlights that crypto platforms and advocates often deceive users, have conflicting interests, inadequately disclose information, or commit large-scale fraud.
The report highlights the decline of LUNA's stablecoin UST and the failure of cryptocurrency exchange FTX, making 2022 a challenging year for the crypto industry.
The Biden Administration has taken measures to prevent scams like the FTX scandal. They have announced their commitment to working with international partners to combat the illicit use of cryptocurrency and strengthen the regulatory structure around digital assets. This includes enhancing Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, as well as implementing additional measures.
The Federal Reserve has also published new rules regarding cryptocurrencies for banks in response to the White House's announcement. The goal is to create a safe and transparent environment for the development and growth of digital assets and cryptocurrencies.
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