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White House Calls on Regulators to Enforce Crypto Rules Citing FTX Crisis

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White House Calls on Regulators to Enforce Crypto Rules Citing FTX Crisis

Source: blockchain.news

Regulators around the world have chickened out due to the collapse of FTX which has caused a further drop in the digital asset market.

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Therefore, there is a call for stricter regulations for cryptocurrencies and their industry. Today, the Biden administration is re-emphasizing its call for more regulations and legislation on digital assets in the United States.

According to White House Press Secretary Karine Jean-Pierre, the Biden administration has never failed to remind its citizens of the imminent risk and uncertainty associated with trading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others due to their volatility and exposure to cybercrime. Using the FTX implosion as a yardstick, Jean-Pierre reiterated the need for basic crypto regulations.

“The administration has consistently maintained that without proper oversight, cryptocurrencies risk harming ordinary Americans,” Jean-Pierre said during a White House news conference on Thursday. “This is something that we clearly monitor and see as an important issue. The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is needed.”

As such, the White House is keeping an eye on the status of the cryptocurrency exchange in the Bahamas.

Joe Biden signs an executive order for crypto regulation

In March, President Joe Biden signed an executive order that served as additional regulation of the cryptocurrency industry, especially as it pertains to digital asset trading in the United States. Although at the time, the country was seeking means to ensure that war-torn Russia did not evade sanctions by using digital currencies. Now, the executive order has a broader perspective for the cryptocurrency industry.

Some core areas referenced in the executive order are the use of cryptocurrencies for terrorist financing, cyberattacks and scams and the effects on the American financial economy. The executive order was a push for the relevant government agencies to work with other foreign entities to create policies and regulate the crypto ecosystem.

Binance The bailout of the FTX acquisition after receiving the result of corporate due diligence has turned out to be an earthquake for the former “savior” of the crypto ecosystem. Furthermore, FTX CEO Sam Bankman-Fried was an active voice representing the nascent crypto industry on Capitol Hill and always spoke of his vision for crypto regulation.

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