Joe Biden Administrations Crypto Report Get’s Slammed by Lawmakers
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Industry insiders noted that the Biden administration’s highly anticipated reports on digital assets “kickstarted” crypto surveillance. These reports are part of the administration’s effort to coordinate federal departments and agencies dealing with cryptocurrency issues.
Republican lawmakers and cryptocurrency industry groups criticized a series of highly anticipated reports from the Biden administration on digital assets. They said the documents “miss the mark” as well as “kick the can down the road” on regulation.
On Friday morning, the Democratic administration released several reports examining digital assets. This is part of an effort to unify federal agencies and departments dealing with cryptocurrencies.
The White House is laying the groundwork for digital resources
Brian Deese, the White House’s chief economic adviser, stated that the White House is “laying the groundwork for a smart and comprehensive approach to mitigate the acute risk of digital assets and capitalize on their benefits, if they prove to be so.”
National Economic Council Director Deese stated that “We remain committed to working with allies and partners to shape the ecosystem of the future,”
Deese and many others in the digital asset community criticized the effort, saying it did not provide a clear path forward for US policy on digital assets. Given the administration’s call for regulators to “aggressively pursue enforcement in this area,” the reaction is not surprising.
The reports were coordinated by the officials, who requested anonymity during a press briefing Thursday. They said existing financial laws are sufficient to regulate digital assets. That’s the exact opposite message being sent by industry groups in Washington, even as senior officials spoke in support of clearer guidelines for the still-nascent asset class.
The Blockchain Association says the report has no substance
The Blockchain Association, one of the main digital asset groups, stated that the new reports do not contain “substantive recommendations.”
Kristin Smith, executive director of US Crypto Leadership, called the reports “a missed opportunity to strengthen US cryptocurrency leadership.” He also criticized them for being too focused on the risks associated with cryptocurrencies.
Sheila Warren, CEO of the Crypto Council for Innovation, stated that the reports were “outdated” and “unbalanced.” He also criticized the lack of clear policy recommendations.
At least one company in the industry was pleased with the new reports.
“We are pleased that the administration is directing federal agencies to better enforce existing accounting laws,” Ben Gray, general counsel and chief compliance officer at Paxos Trust Company, said in a statement.
Rep. Jim Himes is a crypto-friendly lawmaker and has proposed legislation to create a digital currency. He also praised these reports in a phone interview with The Block.
Himes said, “I’m happy with the momentum.” “I didn’t leave with a lot of recommendations or specific suggestions.”
Republicans were not impressed with the report
Rep. Patrick McHenry is the top Republican on the House Financial Services Committee. He criticized the reports for not including more concrete actions.
McHenry said in a statement that the reports are not intended to replace legislative clarity. This innovative technology, if governed by clear rules, can revolutionize financial markets and modernize the infrastructure of our payment system. It also offers consumers new opportunities.
McHenry’s Republican counterpart in the Senate also echoed this criticism.
“While I applaud the Biden administration’s commitment to digital resources, true regulatory transparency requires more than just reports,” Pat Toomey (R.Pa.), the top Republican on the Senate Banking Committee, said in a statement. “There is a clear need for a comprehensive, tailored framework that allows these new technologies to flourish with appropriate safeguards for consumers.
McHenry and Toomey also attacked the administration’s decision not to support stablecoin legislation.
Reports of Joe Biden’s digital assets need a conclusion
McHenry noted that these reports failed to recognize the positive effects that stablecoins could have on our payments system or consumers if issued within a clear regulatory framework.
McHenry attacked McHenry’s decision to create an interagency group to prepare for a digital dollar if the Federal Reserve creates one.
McHenry noted that “Republicans have always argued that the benefits of the US’s CBDC potential must outweigh the potential risks – these reports fail to make their case.”
Himes, a proponent of digital currency, thought the opposite. He saw Congress playing a bigger role than the reports suggest, much like McHenry or Toomey.
He said, “I think Congress is doing the right thing right now.”