US Congress May Take New Measures on crypto market
2022.12.17 11:02
US Congress May Take New Measures on crypto market
Budrigannews.com – The Financial Stability Oversight Council, or FSOC, has advised U.S. lawmakers to pass legislation to close regulatory loopholes pertaining to crypto-related activities.
The Financial Stability Oversight Council (FSOC) released its annual report on December 16 and urged Congress to pass legislation that would grant “explicit rulemaking authority for federal financial regulators over the spot market for crypto-assets,” noting that tokens that had been identified as securities would be exempt from this requirement.
The council also pointed out that the United States does not have a comprehensive regulatory framework that specifically addresses stablecoins as well as the visibility and supervision of crypto firms.
When recommending actions regarding digital assets, the FSOC referred to the recent demise of the cryptocurrency exchange FTX as part of its background information. The council claims that problems with FTX “predicted price decreases in Bitcoin and other crypto-assets” but “had a limited impact on the broader U.S. financial system.”
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In the FSOC report, Securities and Exchange Commission chair Gary Gensler stated, “Investors are put at risk by risks from this speculative, volatile, and what I believe is a largely non-compliant market.” It is crucial, therefore, to bring crypto securities token issuers and intermediaries into compliance. We must remain vigilant to guard against that possibility, even though the risks from the cryptocurrency markets do not appear to have spread to the conventional financial sector to this point.
In accordance with President Joe Biden’s executive order on cryptocurrency, the council released the annual report in October, which reiterated the FSOC’s calls for legislation. Both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have argued, at the time of publication, in favor of their respective organizations taking the lead in regulating digital assets in the United States.
However, the report did not appear to suggest which agency should take over in response to instructions from Congress.
