The White House has revealed a strategy to address the possible risks linked with crypto.
The statement, which was issued on Friday (27 January 2023), details the efforts the Biden Administration has taken to address the problems posed by cryptocurrencies. These include developing a framework for their safe and responsible use, boosting enforcement, and issuing new guidelines.
According to the White House, a team of specialists from throughout the Administration has created the first-ever framework for the safe and responsible creation of digital assets. The framework intends to deal with the dangers connected with digital currencies, such as certain businesses ignoring financial rules and fundamental risk controls, as well as the industry’s weak cybersecurity.
Furthermore, the White House said that enforcement is being increased where appropriate, and new advice is being made available as needed. The banking agencies have issued unified recommendations on the significance of disconnecting risky digital assets from the banking system, while other agencies are starting or planning public awareness campaigns to help educate people about the hazards of purchasing cryptocurrencies.
The White House is also urging Congress to take action by enhancing regulators’ abilities to prevent the misappropriation of consumers’ funds, as well as to reduce conflicts of interest and increase transparency and disclosure standards for cryptocurrency firms. However, the statement advises that Congress should not enable conventional institutions, like pension funds, to participate substantially in cryptocurrency markets.
The Administration also pointed out that it promotes the ethical use of emerging technology to make financial services cheaper, faster, safer, and more accessible. However, new technologies must have protections in place to ensure that they are secure and helpful to everyone and that the digital economy benefits many rather than a few.
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