• The Biden Administration has recently released a roadmap that calls for increased enforcement and regulation of the crypto sector.
• The roadmap cites several major crypto sector failures in 2020, such as the implosion of Terra’s algorithmic stablecoin UST and the collapse of FTX, and highlights the risks posed by lack of applicable regulations, misleading statements, inadequate disclosures, and poor cybersecurity measures.
• The roadmap seeks to ensure that cryptocurrencies do not undermine financial stability and lays out the first-ever framework for safely and responsibly developing digital assets.
The Biden Administration has recently addressed the risks posed by cryptocurrencies with the release of a roadmap that calls for increased enforcement and regulation of the crypto sector. This comes after a year of several major failures within the crypto sector, including the implosion of Terra’s algorithmic stablecoin UST, which prompted a wave of insolvencies, and the collapse of FTX, which delivered billions in losses to users.
The White House has highlighted the need to mitigate the risks of cryptocurrencies and ensure that they do not undermine financial stability. The roadmap also seeks to create a framework for safely and responsibly developing digital assets. It cites several major risk factors, such as lack of applicable regulations, misleading statements, failure to make adequate disclosures, and poor cybersecurity measures that allowed the Democratic People’s Republic of Korea to steal over a billion dollars to fund its aggressive military activities.
The roadmap calls for authorities to ramp up enforcement where appropriate and for Congress to step up its efforts to regulate the industry. It also encourages the development of international standards and urges private sector actors to take steps to ensure the safety and soundness of the crypto sector.
The Biden Administration has made it clear that it is taking the risks posed by cryptocurrencies seriously and is committed to mitigating these risks and ensuring that they do not undermine financial stability. The roadmap provides a comprehensive approach to address these risks and create a framework for safely and responsibly developing digital assets. It is hoped that the roadmap will help the crypto sector to thrive and develop in a responsible manner.