The White House has worked out a roadmap to mitigate the risks in the wider digital assets industry. In an official blog on the White House’s website, President Joe Biden’s administration has talked about the billions of dollars that average investors have lost through LUNA/Tera and FTX implosions and that such frauds should not be repeated.
“Many everyday investors who trusted cryptocurrency companies—including young people and people of color—suffered serious losses, but, thankfully, turmoil in the cryptocurrency markets has had little negative impact on the broader financial system to date,” the blog reads.
The blog, written by four senior Biden administration officials, asks Congress “to step up its efforts” to regulate the cryptocurrency sector more effectively by providing greater powers to the regulators. The authors of the document are Brian Deese, Director of the National Economic Council; Arati Prabhakar, Director of the White House Office of Science and Technology Policy; Cecilia Rouse, Chair of the Council of Economic Advisors; and National Security Advisor Jake Sullivan.
“Congress, too, needs to step up its efforts. For example, Congress should expand regulators’ powers to prevent misuses of customers’ assets—which hurt investors and distort prices—and to mitigate conflicts of interest,” the document says.
The Biden administration officials have suggested that Congress strengthen transparency and disclosure requirements for digital assets companies, and work closely with global law enforcement agencies.