Joe Biden, US President’s administration has issued an advisory for Congress to proceed with the crypto currency regulations. The big move has come amid the increasing need for clear digital assets laws by the industry.
More strict crypto laws ahead?
As per reports, the US Financial Stability Oversight Council, which includes the Treasury department urged the politicians to form an agreement over the laws. This includes regulations on Bitcoin and other crypto assets.
The Biden administration has asked Congress to press the laws as the delays are putting the investors at a huge risk. This report was submitted after the Congress debate proposal that covered the $140 billion stablecoin market. It includes tax rules for crypto brokers.
Meanwhile, reports suggest that Congress is still months away from passing crypto related legislation. However, the Biden administration seems to be worried about the fear of repeating the same collapse as Terra’s stablecoin USTC.
The historic collapse of Terra’s native token LUNA and stablecoin USTC left a huge dent in the crypto industry. However, it also triggered the downfall of the market. The global digital asset cap has shrunk to stand under the crucial $1 trillion mark.
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This incident has increased the volatility in the market. Major digital asset firms also filed for bankruptcy which has caught the eye of the committee.
Who will take the lead?
However, US regulatory agencies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have come forward to press jurisdiction over the evolving crypto market.
The SEC has gone on to file lawsuits against several crypto firms and currency over illicit practices. However, the SEC chair also argued that most of the digital assets are securities. While platforms should be regulated by the commission.
The report hints that the SEC chair and CFTC chair did not plan to back one agency over another.
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