White House recommends that pension funds not use cryptocurrency
2023.01.28 03:36
White House recommends that pension funds not use cryptocurrency
By Tiffany Smith
Budrigannews.com – On January 27, the White House issued a statement outlining a strategy for mitigating cryptocurrencies-related risks for the Joe Biden administration. With the administration’s guidance for legislation, a significant portion of the document was addressed to the United States Congress.
The statement’s authors outlined a two-pronged strategy for moving forward. They penned:
“We have spent the past year identifying the risks posed by cryptocurrencies and taking action to mitigate them using the authority that the Executive Branch possesses,” the statement reads.
The administration’s “first-ever” comprehensive framework for digital asset development, which was released in September, is the first component of the road map. The reports required by the president’s March executive order on Ensuring Responsible Development of Digital Assets served as the basis for that document.
Second, executive agencies are enforcing new regulations and increasing enforcement. “To help consumers understand the risks of buying cryptocurrencies,” the statement says, public awareness programs are being developed by government agencies. It specifically mentioned banking regulators and urged them to keep working. The statement was released on the same day that the Federal Reserve System denied digital asset Custodia Bank membership.
By safeguarding investors and holding criminals accountable, we will continue to mitigate crypto risks. We are prepared to collaborate with Congress to close regulatory loopholes, but reversing course and strengthening ties between cryptocurrency and the financial system would be a grave mistake.
Notably, the following was included in the statement as a wish list of things the administration would like Congress to do, “Congress, too, needs to step up its efforts.”
The White House has a long list of things legislators need to do. Expanding the powers of regulators, tightening disclosure requirements, tightening penalties for misconduct, increasing funding for law enforcement, and adhering to the recommendations in the executive order-required Financial Stability Oversight Council report are among its recommendations.
The authors also took advantage of the occasion to caution Congress against the following, “Mainstream institutions, like pension funds, should not be allowed to jump headfirst into cryptocurrency markets by legislation.”
They emphasized that limiting such actions prevented the spread of the “turmoil in cryptocurrencies” throughout the financial system.
