The White House is taking steps to tighten the regulations on crypto assets in the wake of bankruptcy filings in the US. Recently, US President Joe Biden directed lawmakers to draft legislation to regulate cryptocurrency in the country.
At first, Biden was not interested in cryptocurrency, but later he signed a document stating that the crypto industry was growing and would need regulations to establish the country as a leader in the digital asset sector.
Recently, Janet Yellen, US Treasury Secretary, officially stated that the country needs rigid regulations on the crypto industry. The lawmakers also accepted the idea of Janet Yellen; they said now is the time to implement new regulations on cryptocurrency.
In the recent G20 summit, Yellen stated that “over the next couple of years, I definitely think that inflation will come back down to levels toward the normal levels we are accustomed to.”
Sherrod Brown, Chairman of the Senate Banking Committee, stated, “It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place. I will continue to work with them to hold bad actors in crypto markets accountable.”
On the basis of recent situations like the sudden FTX crash and the breakdown of crypto prices, lawmakers argued that they wanted new regulations on crypto assets. As the country was moving towards the crypto world, the Democrats of the United States believed that regulations on stablecoins and crypto assets would help in the development of the crypto market in the US.
One of the major investors in FTX, Kevin O’ Leary, stated that it is time to implement regulations for the cryptocurrency industry. If the administration doesn’t take any action towards crypto regulations, there is a possibility that other digital assets will face the same situation as FTX in the crypto market. “The entities will not invest until the industry gets regulated, whether by the SEC or other regulators.”
FTX, the world’s second largest crypto exchange platform, valued at $32 billion (USD), was facing severe losses. The United States Securities and Exchange Commission (SEC) has started an investigation on how FTX manages the users’ funds and its crypto lending activities. As per the reports, nearly $1 billion worth of user funds were missing from FTX.
The midterm elections that were recently held in the US totally changed the political dynamics in the country. Democrats once again created history by winning over Republicans. The Democratic Party retained its majority in the Senate, which it had first won in 2021. It won two seats in Arizona and Nevada and one seat in Georgia was left blank due to candidates not getting 50% of the vote, which was required under state laws.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/11/15/the-crypto-industry-in-the-united-states-needs-strict-regulations/