US President Joe Biden’s government, which Congress is working on cryptocurrency began to pressurize him to speed up his regulations. This move from the White House front comes amid growing demand for regulatory moves that are missing in the cryptocurrency markets.
Strict Cryptocurrency Laws On The Way?
According to media reports, the US Financial Stability Oversight Council, which includes the Treasury department, has invited politicians to reach an agreement on laws. This, bitcoin A request that means now defining agreements and laws that include regulations regarding cryptoassets and other crypto assets.
Koinfinans.com As we reported, delays continue to pose major risks to investors, according to the Biden administration, so Congress has been called upon to pressure the law. It was noteworthy that this report was presented after the Congressional discussion proposal covering the $140 billion stablecoin market. These laws also demand that crypto brokers be subject to taxation.
Meanwhile, reports also revealed that Congress is still months away from passing crypto-related laws. However, the Biden administration fears a repeat of the collapse of the Terra ecosystem’s algorithmic stablecoin, USTC.
As it will be remembered, the historical collapse of Terra’s native token LUNA and its algorithmic stablecoin USTC caused great damage to the crypto industry. The effect of this damage was one of the critical factors that triggered the long-lasting price drops. The declines, on the other hand, pushed the total value of the crypto money market below $ 1 trillion.
This event increased the volatility in the market. Following this collapse, major digital asset firms also filed for bankruptcy, which caught the attention of the committee.
However, US regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are at the forefront to enforce jurisdiction over the burgeoning crypto market.
The SEC continues to file lawsuits against several crypto firms and currencies for illegal practices. However, the SEC chairman also argued that most digital assets are securities. Platforms, on the other hand, are frequently called for regulation by the commission.
The report implies that the SEC chairman and the CFTC chairman do not plan to favor one institution over another.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.