The White House is urging members of Congress to be more diligent as it pertains to future cryptocurrency legislation, with officials calling it a “grave mistake” to further tie in the digital currency with the broader financial system.
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White House officials Brian Deese, Arati Prabhakar, Cecilia Rouse and Jake Sullivan penned a letter Friday as a “roadmap to mitigate cryptocurrencies’ risks.” In light of strenuous implosions and collapses across the crypto market in 2022, they vowed on behalf of the Biden administration to continue to ensure cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable.
“Congress could also make our jobs harder and worsen risks to investors and to the financial system,” the letter reads. “Legislation should not greenlight mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets.
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“In the past year, traditional financial institutions’ limited exposure to cryptocurrencies has prevented turmoil in cryptocurrencies from infecting the broader financial system. It would be a grave mistake to enact legislation that reverses course and deepens the ties between cryptocurrencies and the broader financial system.”
The four officials wrote that “clear risks” emanate from crypto companies’ ability to make payments faster, cheaper and safer—adding that “some cryptocurrency entities ignore applicable financial regulations and basic risk controls.”
“Cryptocurrency platforms and promoters often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud,” the letter continues. “And there is poor cybersecurity across the…
