The White House has issued a statement addressing the bankruptcies that occurred last year. In a recent statement, it was reported that President Joe Biden and his administration will announce their priorities regarding the risk factors of the cryptocurrency market in the coming months.
Cryptocurrency statement from the White House
The Biden-led White House recently released a statement entitled “Roadmap to Mitigate the Risks of Cryptocurrencies.” Starting with the 2022 crypto bankruptcies, the statement states that management will focus on ensuring market stability and protecting investors:
2022 was a tough year for cryptocurrencies. In May, a so-called “stablecoin” exploded, sparking a wave of bankruptcies. Just months later, a major cryptocurrency exchange crashed… …While cryptocurrencies are relatively new, the behavior we have seen some crypto companies display and the risks posed by that behavior is not. As a management, we focus on ensuring that cryptocurrencies do not undermine financial stability, protect investors and continue to hold bad actors accountable.
New steps will be taken in the coming months
The statement also included the work done by the Biden administration on cryptocurrencies to date. However, it was underlined that efforts such as the obligation to separate risky digital assets from the banking system, public awareness programs and the protection of financial institutions are ‘not enough’. The White House administration is now reporting that it will announce a new ‘list of priorities’ to help protect investors:
Under President Biden’s direction, we have spent the past year identifying the risks of cryptocurrencies and taking action to mitigate them, using the powers of the Executive Branch.
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But the events of the past year highlight the need for more. Institutions have redoubled their anti-fraud efforts, including the proliferation of false or misleading claims about cryptocurrencies insured by the FDIC. While the United States is already a global leader in combating money laundering and terrorist financing, its enforcement agencies are devoting more resources to tackling illegal activities involving cryptocurrencies. In the coming months, the Administration will also announce the research and development priorities of digital assets that will help the technologies powering cryptocurrencies protect consumers by default.
White House seeks public opinion on crypto policy
In another development, the White House Office of Science and Technology Policy (OSTP) sought public feedback on the development of a cryptocurrency policy. Public opinion on the matter will play a key role in identifying critical focus areas in the research and development of cryptocurrencies, according to the organization, in a journal published Jan. cryptocoin.comAs we have mentioned, the White House administration has been preferring to focus on stablecoins for a while.
