• Four senior White House officials posted a blog on 27 January, criticizing Congress for failing to enact cryptocurrency regulations.
• They asked lawmakers to expedite their efforts to develop a crypto regulatory framework.
• Biden’s advisers warned that the newly sworn-in Republican House of Representatives could exacerbate the situation by loosening regulations.
Yesterday, four senior White House officials posted a blog, expressing their criticism towards Congress for their failure to enact cryptocurrency regulations. They urged lawmakers to increase their efforts to develop a comprehensive national crypto regulatory framework. The post outlined several steps Congress could take to combat fraudulent activities and protect consumers in the crypto space.
The White House called for increased transparency and disclosure requirements for cryptocurrency companies, as well as assisting law enforcement by increasing funding, toughening penalties for existing finance rules, and improving those rules to penalize intermediaries. Additionally, the blog suggested that Congress should pass legislation to regulate stablecoins.
The post concluded by warning that the newly sworn-in Republican House of Representatives could make the situation worse by loosening regulations, referencing the House Republican leadership’s recent announcement of the new Subcommittee on Digital Assets, Financial Technology and Inclusion.
Despite the criticisms from the White House officials, cryptocurrency regulations have not been a priority for President Joe Biden. As a result, Congress has been slow to enact regulations, leaving the crypto space at risk of fraudulent activities. The blog post called for lawmakers to take immediate action to ensure that consumers are protected and bad actors are held accountable.