Biden Administration Urges Speed Up of Crypto Regulation as Recession Fears Rise

cryptonews.com:

US President Joe Biden’s administration urged Congress to pass laws that will clarify how cryptoassets should be regulated, amid increasing fears of a global recession.

The group of financial regulators comprising the US Financial Stability Oversight Council issued a report on Monday, calling on politicians to reach an agreement on crypto-related matters, including the way in which it is sold on the spot market.

The report follows a number of major crypto and worldwide events, including a bear market, the massive collapse of the Terra/LUNA ecosystem, a number of crypto companies going bankrupt in the subsequent fallout, Russia’s invasion of Ukraine, Congress discussing tax rules for the stablecoin industry, as well as growing fears of a global recession.

It also comes after the week that saw stock falling due to recession fears, the Dow Jones dropping into bear territory, as well as the British pound sliding to an all-time low against the dollar.

Called ‘Report on Digital Asset Financial Stability Risks and Regulation’, it “reviews financial stability risks and regulatory gaps posed by various types of digital assets and provides recommendations to address such risks,” said the press release.

It makes note of “interconnections” within the crypto ecosystem and the traditional financial system, including traditional assets held as part of stablecoin activities, as well as crypto exchanges potentially providing a wide variety of services, such as leveraged trading and asset custody, to various retail investors and traditional financial institutions.

The report stated that it identified three gaps in the US crypto regulation:

To address regulatory gaps, the Council recommended the following steps:

Secretary of the Treasury Janet