White House criticizes crypto

In a new U.S. government economic report, sharp criticism is leveled at crypto assets and digital assets.

In a new U.S. government economic report, sharp criticism is leveled at crypto assets and digital assets. They would pose problems for consumers and the environment.

The White House is negative in a new economic report about cryptocurrencies. According to the government report, many parts of the current crypto ecosystem cause problems for both consumers, the financial system, and the environment.

For the first time, a crypto chapter

It's the first time the annual document includes a chapter on cryptocurrencies. The report was written by the White House Council of Economic Advisers and notes that the often-touted benefits of crypto assets don’t hold up.

"Instead, the innovations were mainly about creating artificial scarcity to push up the prices of crypto assets—and many of them have no fundamental value."

Former New York Department of Financial Services official Matthew Homer said it was a "devastating indictment."

"The attention to digital assets is significant. Especially compared with other areas of financial services," these have demonstrably "caused far more damage" in recent weeks, Homer said.

With America’s financial troubles around the central banks, the U.S. government appears to be lining up multiple rescue actions. With such news and relief packages for collapsing banks, the government is trying to influence public sentiment.

Also recognition from the report

Part of the document does acknowledge that "some crypto assets are here to stay" and that distributed ledger technology (DLT) "can still develop productive applications in the future."