Congress is Slowing Down the Execution of Crypto Regulations, says US President Representatives

White House

Authorities across the countries worldwide are keen on regulating the burgeoning asset class of cryptocurrencies. How far regulators could go to fulfill their objective is the matter of time for now. In a recent blog post, the US President’s four senior advisors noted their concerns regarding the crypto regulations. 

The advisors went on to call out Congress alleging them of delaying a detailed national regulatory framework on crypto. This framework is said to have a synopsis of those actions that lawmakers could go on with in order to take charge on illicit actors. 

With some suggestions further, the post added that Congress could take some moves right away that could supposedly strengthen standards of consumer protection within the crypto industry. 

For instance, these actions include giving federal regulatory organizations like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) more authority; enhancing the transparency and disclosure standards for cryptocurrency companies; assisting law enforcement by increasing funding; toughening the penalties for current finance rules and improving those rules to penalize intermediaries; and passing legislation to regulate stablecoins, as described in a recent report.

In their Friday memo, Biden’s advisers also issued a warning that the just sworn-in Republican House of Representatives would make matters worse by relaxing restrictions at such a crucial time.

The experts warned that Congress might also make their work more difficult and increase dangers to investors and the financial system. “It would be a catastrophic error to pass legislation that changes course and tightens the connections between cryptocurrencies and the larger financial system.”

The admonition seems to make reference to the newly established Subcommittee on Digital Assets, Financial Technology, and Inclusion that was just made public by the House Republican leadership. Rep. French Hill (R-AR), the chair of the committee, has stated that he wants to “encourage responsible innovation” in the Bitcoin and FinTech industries.

President Biden hasn’t exactly made it a priority either in the two years from early 2021 to just a few weeks ago, when Democrats controlled the presidency, the House, and the Senate. However, the White House was quick to blame Republicans for crypto-related inaction. Several scandals rocked the cryptocurrency industry at that time, including the collapse of UST in May and the collapse of the $32 billion crypto exchange FTX in November.