US calls to speed up implementation of rules for regulating the crypto market

Delay carries risks for investors, officials from the presidential administration said

04.10.2022 - 06:45

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What’s new? US President Joe Biden’s administration has urged Congress to pass laws clarifying rules for regulating cryptocurrencies. According to officials, delays in enacting the rules could expose investors to risks, the Financial Times reports.

News on the Financial Times website

What other proposals have been put forward? The US Financial Stability Oversight Council (FSOC) has released a report urging policymakers to come to an agreement on the regulation of bitcoin and other crypto assets traded on the spot market. The report comes amid discussions in Congress regarding the implementation of tax rules for crypto brokers in the stablecoin industry.

The report warns that many crypto asset transactions lack basic controls to protect against the risks associated with over-leveraging. In addition, crypto asset prices are often determined by speculation rather than current fundamental economic needs.

The FSOC suggested strengthening inter-agency cooperation to close existing loopholes that allow crypto companies to find lucrative regulatory frameworks to regulate business. In this regard, the Council believes that Congress should pass rules that would allow federal market regulators the right to set laws on crypto-asset markets that are not subject to current US securities laws. The FSOC also called on Congress to create a federal framework to regulate stablecoin issuers.

Earlier, Brian Quintenz, the former US Commodity Futures Trading Commission (CFTC) commissioner, said that the Securities and Exchange Commission’s (SEC) approach to regulating the crypto market is a threat to the continued growth of the industry. According to Quintenz, the SEC should not expect rules that promote the disclosure of the full potential of innovation.

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