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White House calls for more regulation of the crypto sector

White House representatives have accused Congress of not getting crypto legislation passed, and are pushing for new regulation.

By Finst News
• 4 min read
White House calls for more regulation of the crypto sector

White House representatives have accused Congress of failing to pass crypto legislation, and are pushing for new regulation.

In a blog post from Friday, January 27, White House officials warned about the risks of cryptocurrencies. They called in particular for "more efforts" from Congress to regulate the crypto sector. Despite the turmoil of the past year, the crypto sector has so far remained fairly accessible. They also pointed to a range of measures aimed at stronger consumer protection.

More transparency rules

This includes expanding the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and tightening transparency rules for crypto users. Regulation to prevent the risks of so-called stablecoins is also needed with an eye toward the Terra-Luna collapse. They also warned about a potential loosening of current rules, as that would "increase the risk for investors."

Despite everything, the representatives were open about the benefits of cryptocurrencies. They support "responsible technological improvements." However, there are "rules" needed to ensure everyone benefits from the "new digital economy" and not just a few, as the White House explains.

Read also 'Stricter crypto rules for banks in New York'

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