Biden Administration Pitches for Regulation and Strict Oversight of Crypto 

In a series of reports, the Joe Biden administration on Friday has offered its response to the President’s executive order on cryptocurrencies – Ensuring Responsible Development of Digital Assets – issued earlier this year, media reports said.

Here is all that you need to know about the Biden administration’s Friday reports:

• The Joe Biden administration has asked the enforcement agencies to strictly pursue the digital asset sector and identify gaps in regulations. It also urged regulators such as the SEC and the CFTC to issue guidelines for potential risks of digital assets such as money laundering and fraud.
• Despite a growing role, cryptocurrencies have the potential to be misused. They can global harm global finance, claimed the report.
• Director of the National Economic Council Brian Deese said, if left unregulated, cryptocurrencies can harm financial stability and national security:

“Regulation of cryptocurrencies is needed if digital assets are going to play a role that we believe they can in fostering innovation and supporting our economic and technological competitiveness,” he said.

• Although the Treasury Department will helm the efforts toward CBDC by leading concerned government agencies, the White House has not clearly approved the idea of a digital dollar as of now, in line with Biden’s executive order in March – Responsible Development of Digital Assets.     
• Treasury Secretary Janet Yellen hailed innovations in the digital asset sector but cautioned that inadequate regulations can cause significant harm to the financial system and people. 

“Innovation is one of the hallmarks of a vibrant financial system and economy, but as we’ve painfully learned from history, innovation without adequate regulation can result in significant disruptions and harm to the financial system and individuals,” Yellen told media persons.

• The White House said the President might consider asking Congress to amend the Bank Secrecy Act (BSA) to include crypto exchanges, NFT platforms, and other service providers under its purview. One of the BSA requirements for lenders is to report suspicious transactions to the Treasury. 
• The President could also consider government recommendations to institute a federal framework to regulate non-bank payment providers.