Four senior US officials in the White House have called on the US Congress to ‘step up its efforts’ in regulating the cryptocurrency market.
According to CoinDesk, the officials wrote that Congress ‘should expand regulators’ powers to prevent misuses of customers’ assets and to mitigate conflicts of interest’.
Other suggestions for Congress in the statement included strengthening transparency and disclosure requirements for crypto firms, strengthening penalties for violations of illicit-finance rules, and working more closely with international law enforcement partners.
The officials also suggested what Congress should not do in terms of crafting new crypto regulation, including ‘greenlighting mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets.’
Related: FTX, Congress, Stablecoins: What 2023 May Bring For Crypto Regulations
The White House officials warned that this would be a ‘grave mistake’ that could deepen ties between cryptocurrencies and the broader financial system.
They wrote, “Some cryptocurrency entities ignore applicable financial regulations and basic risk controls. In addition, cryptocurrency platforms often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud.
“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.”
More than 28 tech organisations that develop open-source projects recently called on Congress to protect consumer privacy when regulating the blockchain space.
