The Biden administration is reportedly looking to increase oversight of the crypto market with the aim to protect investors and prevent illicit transactions. White House officials, lawmakers, and central bankers have had several meetings on cryptocurrency regulation amid recent price swings of crypto assets.
Biden Administration Discussing Crypto Regulation
The Biden administration, lawmakers, and central bankers have held numerous meetings amid recent volatility in the crypto market, the Washington Post reported Tuesday.
White House officials were briefed by the Treasury Department about the risks posed by cryptocurrencies earlier this month, the publication cited two people familiar with the matter. Federal regulators, including the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB), were also involved.
Officials of the Biden administration are studying potential â€œgapsâ€ in oversight related to the cryptocurrency market, such as whether cryptocurrencies can be used to finance illicit or terrorism activities, the people said, adding:
The Treasury Department recently unveiled Bidenâ€™s tax proposal, including requiring businesses to report crypto transactions of more than $10K to the Internal Revenue Service (IRS) as part of a broader effort to crack down on tax evasion.
Federal regulators currently do not see the volatility in the crypto market as a threat to the broader financial market stability but believe that the risks are worth monitoring.
Administration officials are discussing whether crypto oversight can be heightened while still allowing investors to â€œdogecoin to their heartâ€™s content,â€ one person briefed on the matter described, elaborating:
Meanwhile, central bank officials and congressional lawmakers have talked more frequently about policies that could significantly change the crypto market. The House has passed bipartisan legislation, which has been sent to the Senate, instructing federal regulators to study and clarify rules for cryptocurrency. Bitcoin News reported Wednesday that federal regulators are working together to achieve this goal. According to Federal Reserve Vice Chair of Supervision Randal Quarles, this matter is of â€œhigh priority.â€
The recent market instability has compounded existing concerns about cryptocurrency, including the environmental effect of bitcoin mining. Government officials also think cryptocurrency makes it easier for criminals to transfer money without detection.
Jason Furman, a senior economist in the Obama administration, was quoted by the news outlet as saying:
Meanwhile, the new chairman of the U.S. Securities and Exchange Commission (SEC) said that more investor protection is needed and crypto exchanges need more regulation. He revealed last week that he has asked Congress to weigh in on this issue. However, Congressman Jim Himes said that Congress is not ready to take action on cryptocurrency and in his opinion, no crypto registration will be passed by Congress anytime soon.
John Fagan, a former director of the U.S. Treasuryâ€™s Markets Room and now principal of Markets Policy Partners, said the Biden administration is likely to look at cryptocurrency issues with a focus on problems caused by money laundering, tax evasion, and investor protection. He expects the Treasury to concentrate on the first two issues while the SEC on the latter.
What do you think about the Biden administrationâ€™s push for more crypto oversight with the aim to protect investors? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.