Bitcoin and Cryptocurrency Call from the US Treasury Department!

Biden administration, cryptocurrency reiterated its push for tighter oversight following the collapse of the stock market FTX, urging Congress to close loopholes in the regulation of cryptocurrencies.

Committee Chaired by US Treasury Secretary Janet Yellen Asks Congress to Complete Regulations for Cryptocurrencies

The Financial Stability Oversight Council, chaired by Treasury Secretary Janet Yellen, said Congress should take steps to ensure that the crypto industry is subject to a framework that would ensure orderly and transparent trading, investor protections and other rules that apply to traditional financial firms.

Policymakers warned in their annual report released Friday that while crypto-assets’ links to the traditional financial system are currently limited, they could grow rapidly.

Federal agencies are vying for authority over cryptocurrency markets, which were valued at nearly $3 trillion last year before crashing this year. Policymakers say this asset class raises concerns about investor protection, financial stability and national security.

Recommendations announced on Friday, bitcoin The stock market is consistent with calls made by the Biden administration before FTX filed for bankruptcy last month. This includes ensuring that a “spot” market is regulated for cryptocurrencies that do not meet the definition of a securities regulated by the Securities and Exchange Commission (SEC).

It also calls for comprehensive control over crypto assets and all their associated entities.

The prospect of legislation moving forward in the fragmented new Congress, due next month, remains unclear.

The White House has yet to become involved in the confusion of jurisdictions between regulators, including the SEC, the Commodity Futures Trading Commission (CFTC), and the Fed. All of these are requesting or planning jurisdiction over parts of the crypto market.

*Not investment advice.