The administration of the US President Joe Biden recently released a regulatory framework for digital assets, however major players in the space deem it inadequate.
A fact sheet outlining steps taken to regulate the crypto sector was released by the White House on Friday. Despite earlier calls for a uniform regulatory framework, industry players have criticized the recently implemented plan.
The regulatory framework aims to “protect consumers, investors, businesses, financial stability, national security and the environment,” according to the White House document. However, US Representative Patrick McHenry pointed out that the plan is flawed on a number of key points.
McHenry says White House bulletins are an unacceptable substitute for true “legislative clarity.” He also pointed out that they focus on the risks posed by digital assets rather than acknowledging their critical contribution to fostering innovation in the United States.
Besides Mr. McHenry, the Blockchain Association also criticized the Biden administration’s stance on regulations. According Kristin Smithexecutive director of the Blockchain Association, the United States lost a chance to consolidate its position as a world leader in the crypto sector with this strategy.
Like McHenry, Smith mentioned that the reports lost sight of the opportunities and shifted their focus to the risks of cryptocurrencies, obscuring the possibility of offering suggestions to promote innovation in the industry.
“It’s surprising given the clear instructions from the [décret] and the work of members of Congress to get things done,” Warren added. In addition, the U.S. senator Patrick Toomey said these reports cannot replace actual regulatory action.
The United States is speeding up the regulation of cryptocurrencies
Even so, a few industry experts have expressed satisfaction with the recently released documents. Ben Graylegal director of the FinTech company Paxos Trust Company, congratulated the US government. He welcomed the efforts made by the government to ensure that the relevant agencies apply the appropriate rules.
The US representative Jim Himes, a cryptocurrency advocate, applauded the Biden administration for the move. He expressed satisfaction that this is at least a start towards proper regulation of cryptocurrencies.
The nine reports were released six months after President Biden’s executive order. The decree that the president signed in March has received several praises from industry players. These recent reports have failed to meet the expectations of the crypto community as a whole.
The United States has recently stepped up its regulatory approaches to cryptocurrencies, due to the significant spike in adoption. Nevertheless, these provisions have drawn criticism due in large part to the fact that the main players in the sector believe that they are likely to stifle innovation.
Last week, the White House released a report highlighting environmental concerns related to cryptocurrency mining. In response, the founder of MicroStrategy and Bitcoin maximalist, Michael Saylor, noted that the reports aim to discredit Bitcoin. Saylor said the report is “riddled with misinformation generated and promulgated by unscrupulous crypto proponents.”
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