Joe Biden Just Sent A Stark Warning To Bitcoin And Crypto After $2 Trillion Price Crash

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The bit­coin and cryp­to mar­ket has crashed this year, falling sharply after rock­et­ing to around $3 tril­lion late last year (with some yet to call the bit­coin price bot­tom).

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The bit­coin price has crashed under $20,000 per bit­coin, drop­ping from almost $70,000, as the mar­ket wres­tles with the Fed­er­al Reserve’s string of inter­est rate hikes that could mean more volatil­i­ty for bit­coin.

Now, the Biden admin­is­tra­tion has instruct­ed U.S. gov­ern­ment agen­cies to dou­ble down on bit­coin and cryp­to enforcement—potentially putting the $1 tril­lion mar­ket on a col­li­sion course with reg­u­la­tors after the White House Office of Sci­ence and Tech­nol­o­gy sug­gest­ed bit­coin could be banned.

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MORE FROM FORBES’The Price Could Skyrocket’-Here’s When Ethereum Could Flip Bit­coin

A series of White House reports urged reg­u­la­tors includ­ing the Secu­ri­ties and Exchange Com­mis­sion (SEC) and the Com­mod­i­ty Futures Trad­ing Com­mis­sion (CFTC) to issue rules for cryptocurrencies.

“Dig­i­tal assets pose mean­ing­ful risks for con­sumers, investors, and busi­ness­es,” the Biden admin­is­tra­tion said, adding there are “fre­quent instances of oper­a­tional fail­ures, mar­ket manip­u­la­tion, frauds, thefts, and scams.”

Research sug­gests at least $1 bil­lion has been lost to cryp­to fraud since the begin­ning of 2021, accord­ing to the Fed­er­al Trade Com­mis­sion, with the col­lapse of major cryp­tocur­ren­cy luna and its linked sta­ble­coin ter­raUSD adding to fears peo­ple could lose their investments. 

“The reports clear­ly iden­ti­fy the real chal­lenges and risks from dig­i­tal assets used for finan­cial ser­vices,” Trea­sury sec­re­tary Janet Yellen said dur­ing a press brief­ing, it was report­ed by Coin­desk. “If these risks are mit­i­gat­ed, dig­i­tal assets and oth­er emerg­ing tech­nolo­gies could offer sig­nif­i­cant opportunities.”

How­ev­er, Yellen went on to warn a lack of reg­u­la­tion risks repeat­ing “painful” lessons. 

“Inno­va­tion is one of the hall­marks of a vibrant finan­cial sys­tem and econ­o­my, but as we’ve painful­ly learned from his­to­ry, inno­va­tion with­out ade­quate reg­u­la­tion can result in sig­nif­i­cant dis­rup­tions and harm to the finan­cial sys­tem and indi­vid­u­als,” Reuters quot­ed Yellen as saying.

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MORE FROM FORBESThe SEC Chair Issued A Game-Chang­ing Ethereum Warn­ing-Spark­ing A Major Price Crash

Reg­u­la­tors have recent­ly stepped up their scruti­ny of the bit­coin and cryp­to mar­ket, with the SEC brand­ing a num­ber of cryp­tocur­ren­cies secu­ri­ties and fight­ing a long-run­ning bat­tle with the devel­op­er of the XRP cryp­tocur­ren­cy Ripple. 

“The reports encour­age reg­u­la­tors, as they deem appro­pri­ate, to scale up inves­ti­ga­tions into dig­i­tal asset mar­ket mis­con­duct, redou­ble their enforce­ment efforts, and strength­en inter­a­gency coor­di­na­tion,” said nation­al secu­ri­ty advis­er Jake Sul­li­van and Bri­an Deese, direc­tor of the Nation­al Eco­nom­ic Coun­cil, in a statement.

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