Joe Biden backs call for 'critical' crypto oversight

In the wake of the recent G20 summit, developed countries led by Joe Biden call for global enforcement of the crypto sector.

In the wake of the recent G20 summit, the developed countries, led by Joe Biden, are calling for global enforcement of the crypto sector.

After all that's happened since the FTX collapse, there are renewed calls for tougher regulation of the crypto sector. This was also the case after the G20 summit in Indonesia last week. The heads of state of the world's largest industrialized nations, led by U.S. President Joe Biden, called for global regulation of the entire crypto market. After the summit the White House published a joint statement from the countries. In it the authors deem the "tightening of regulation" and the simultaneous use of "the benefits of innovation" as necessary.

same regulation as financial institutions

Specifically, the cryptocurrency guidelines published in October by the Financial Stability Board (FSB) are seen as a basis for global regulation. Under the FSB rules, crypto firms would be subject to as strict supervision as traditional financial institutions. Along with stablecoins, the G20 countries want to tackle the crypto ecosystem with strict oversight and strong regulation, adds. The goal is to remove the "potential risks to financial stability."

Regulation of the sector has become increasingly important in the US this year more important. In March, the American president issued an executive order to regulate the sector. In July the White House published the first results in the form of a factsheet.