Crypto Regulations: US Regulators take action after UN announces global economic recession
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The United Nations (UN) on October 3 published a notice warning the public about the possibility of a global economic recession caused by the Fed. As a result, the Biden administration has urged Congress to accelerate the implementation of a regulatory framework for cryptocurrencies and digital assets.
As reported by The Financial Times on October 3 , the US Financial Stability Oversight Committee has urged Congress to come to an agreement on regulating the cryptocurrency spot market. However, the legislation is still "a few months away," according to officials close to the legislative discussions.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have clashed over their jurisdiction over digital asset regulation. However, the industry would be hit hard if the SEC classifies them as securities.
An urgent need for crypto regulations
Cryptocurrency has been accepted by many countries around the world. Furthermore, investor interest in the crypto world remains high despite the hostile policies put in place by different countries. As a result, the Biden administration has called on congress to soon regulate cryptocurrencies according to the recently published article.
The US Financial Stability Oversight Council (FSOC) is a group of the country's top financial regulators, including the Treasury Department. The group encouraged Congress to reach agreements on various issues in a press release issued on 3 October . The decision-making process also extends to the regulation of Bitcoin [BTC] and other cryptocurrencies traded on the spot market.
Congress also plans to investigate the stablecoin market. This is because the Biden administration remains concerned about a recurrence of the Terra-LUNA incident. However, members of Congress said proper legislation was still months away.
Furthermore, according to another FSOC review report published on October 3, Congress needs to act on rules and regulations to lessen the threat posed by cryptocurrencies. These actions must be taken to protect the overall financial stability of the country.
Fix loopholes to improve regulations
To close any loopholes that would allow operators to uncover critical regulations, the FSOC report recommended cross-sectoral collaboration. read,
“Some crypto asset companies may have branches or subsidiaries operating under different regulatory frameworks, and there is no single regulatory body that can see the risks in their entire operations. business action”.
The collapse of many crypto businesses followed by a protracted bear market. In addition, according to the FSOC, congressional regulations must address issues such as cybersecurity, segregated consumer assets, and unfair business practices.
Oct 04, 2022