By Richard Hines
More adjustments and regulations for cryptocurrencies in the US are now being sought and provided by the Biden-led administration. Can this bring about a radical change in the cryptocurrency market worldwide?
According to Press Secretary Karine Jean-Pierre, the government has severely noted that barring proper regulation, cryptocurrencies put regular Americans at risk.
Does This End The Crypto Contagion?
The functionality of such regulations would have to be readily specified because the uncertainty left by the current crypto market is one for alarm in the international sphere. As she pointed out, these regulations would have to be a step in the right direction to remedy the current market fluctuations and also protect not only investors but also the regulators of the crypto market.
As a result of the White House’s legal separation from financial regulators, Jean-Pierre would not clarify what that might entail, stating that she was unable to comment on steps and measures for independent regulators on this specific subject. She stated that the administration will monitor the issue closely and is aware of the recent and continuous collapse of FTX.
At this juncture, nothing ideal can create the solution, and all that is left to do is not only watch the prevailing nature of the cryptocurrency market but wait until the necessary regulations are implemented.
Current Measures To Curb The Problem
The President had issued a directive earlier this year requesting a review of the laws governing digital assets. Following reports from the chosen financial department, headed by Treasury Secretary Janet Yellen, they suggested prolonged enforcement of existing financial laws, which includes the current U.S. financial services regulations that apply to digital assets.
The message, according to an administration official, is a request to work on implementing enforcement.
Treasury and other officials also urged Congress to enact new stablecoin regulations and legislation, giving agencies more direct control over the cryptocurrency market and exchanges.
Sam Bankman-Fried (SBF), the CEO of the crypto exchange platform, FTX, contributed significantly to Joe Biden’s campaign for president in the 2020 elections and has backed some of that regulatory drive.