crypto strategy

Biden pushes for tougher international crypto regulation | cryptopolitan

Raising awareness of risks, strengthening regulatory outcomes and ensuring a level playing field while reaping the benefits of innovation are essential, G20 leaders said in a statement which was posted on the White House website after the meeting that took place this week in Bali, Indonesia. Joe Biden, the Vice President of the United States, was one of the signers of the statement.

The amount of money allegedly lost by FTX and its sister company Alameda Research has reached staggering heights and threatens to swallow up the broader cryptocurrency industry. As a result, calls for tougher regulatory restrictions have become a cacophony over the past week.

Leaders of G20 countries said they welcome the approach proposed by the Financial Stability Board (FSB) to create a comprehensive global framework for the regulation of virtual currency activities on the basis of the principle “same business, same risk”. , same rules.’

They also said they want to ensure that the ecosystem that surrounds cryptowhich includes so-called stablecoins, is subject to strict regulation, supervision and monitoring to mitigate any potential threat to investors.

Sam Bankman-Fried’s relationship with Joe Biden

A large sum of money was donated by the defunct and insolvent cryptocurrency exchange FTX. Additionally, it had formed a partnership with Ukraine under its cryptocurrency contribution program. When you add the fact that the Obama administration has sent extra aid to the nation in its conflict with Russia, you have the ingredients for the perfect right-wing conspiracy theory.

The company’s downfall has compelled President Joe Biden’s White House as well as the heads of two prominent Democratic committees to openly denounce FTX and demand more oversight of the industry as a whole. In light of the setback, President Biden has argued for more crypto restrictions.

According to Biden’s line of thinking, it is more evident than ever that there are significant repercussions associated with the operation of cryptocurrency businesses in the absence of adequate government regulation and safeguards for users.

According to a committee official who requested anonymity to divulge private discussions, the chair of the House Financial Services Committee, Democrat Maxine Waters of California, is considering opening a congressional investigation and possibly bringing Bankman-Fried on the hill to testify about society. close to collapse in the coming weeks.

In January, the Democrats may lose their majority in the House of Representatives depending on the results of several key contests that have yet to be declared.

What Biden’s crypto regulations aim to do

On March 9, President Biden issued an executive order titled “Ensuring Responsible Development of Digital Assets,” which outlined the first whole-of-government strategy to mitigate the dangers and capitalize on the opportunities presented by digital assets and underlying technologies. underlying.

Over the past six months, federal agencies have collaborated to produce frameworks and policy proposals that promote the six primary objectives listed in the EO: consumer and investor protection; supporting financial stability; fight against illicit financing; US dominance “in the global financial system and economic competitiveness; financial inclusion; and responsible innovation”.

The US Head of State has asked the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to investigate and take legal action against illegal activities in the digital asset industry .

Consumers will be better prepared to deal with the dangers associated with digital assets, recognize typical fraudulent tactics, and report wrongdoing through public awareness initiatives led by the Financial Literacy Education Commission (FLEC).

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