United States: The Biden administration wants to strengthen the regulation of cryptocurrencies – 09/16/2022 at 15:56


Stock photo illustration of tokens representing Bitcoin, Ethereum, Dogecoin and Ripple cryptocurrency networks

(Reuters) – U.S. government agencies must step up efforts to strengthen the law in the digital asset sector and identify loopholes in cryptocurrency regulation, the White House said on Friday.

The Treasury Department will also lead a group of government agencies that will study the potential for a central bank-issued digital currency, although the White House has not come out in favor of a digital dollar.

The collective government action, announced in a series of reports, follows an executive order signed this year by US President Joe Biden “on ensuring responsible development of digital assets.”

These reports prompt regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to issue guidelines and rules regarding the risks associated with the digital asset ecosystem, including its use for laundering. money or fraud.

The White House also indicated that Joe Biden would consider asking Congress to amend the Bank Secrecy Act to apply to digital asset service providers, including cryptocurrency exchanges and non-fungible token platforms ( NFT).

The Justice Department also said it was creating a Digital Assets Coordination Group overseeing 150 federal prosecutors to prosecute cryptocurrency-related crimes.

The value of cryptocurrencies surpassed $3 trillion last year, but the sector could still pose risks for investors.

Brian Deese, the director of the National Economic Council, said cryptocurrencies could harm financial stability and national security without proper oversight.

“Cryptocurrency regulation is necessary if digital assets are to play the role we believe they can play in fostering innovation and supporting our economic and technological competitiveness,” he added.

(Reporting Hannah Lang, with contribution by Susan Heavey, French version Lina Golovnya, editing by Kate Entringer)

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