The White House has constructed a crypto roadmap in order to prevent the risks associated with the asset. On that note, the White House has released a new document, which has been presented to U.S. President Joe Biden.
Most of the document contains an address to Congress in order to help them formulate a more appropriate legislative regulation to govern crypto assets.
These regulations, when they come into play, will remain effective throughout the administration’s tenure. The authors of the document have mainly established two elaborate processes that will accelerate the legislation going forward.
The document’s authors stated two detailed processes moving forward:
“We have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has.”
The first part of this constructive and elaborate roadmap is the administration’s “first-ever” all-inclusive framework for the crypto industry’s development, which was released towards the end of last year.
These documents were based on reports that were put in order by the president’s executive order on Ensuring Responsible Development of digital assets, which was issued in March 2022.
The second part mentions that executive agencies will increase enforcement by issuing new guidelines. Government agencies will be developing public awareness programs in order to educate consumers on the risks associated with buying cryptocurrencies.
A lot of stress has been given to banking regulators, and they have been urged to accelerate their efforts to govern private digital assets.
Other Aspects Of The Document
The document also mentions some actions that Congress should consider introducing. This document highlighted some important tasks for the legislative branch.
Among other changes, regulators should enable the environment by expanding their jurisdiction and increasing disclosure requirements.
It also spoke about funding for officers of law enforcement agencies and penalties for misdeeds by employing data found in the Financial Oversight report.
Furthermore, the released document provides specific guidance on what Congress should avoid doing. This included Congress not approving financial firms to allow pension funds to invest in cryptocurrency. Not allowing this, will help to bring down the fear that surrounds the industry.
The authors stated:
Legislation should not greenlight mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets.
Strengthening The Role Of Federal Regulatory Agencies In Governing Crypto
The document also outlines how the powers granted to federal regulatory agencies should be expanded. For instance, agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) should pay extra attention to increasing transparency and disclosure requirements for these crypto companies.
This move will help law enforcement agencies by extending the amount of funding, increasing the penalties for existing financial rules, and also magnifying these rules in order to penalize the intermediaries.
Additionally, it also emphasizes passing legislation to better govern stablecoins, as previously mentioned in the recent Treasury Department report.