Joe Biden just sent a strong warning to Bitcoin and Crypto after the $2 trillion price crash
The bitcoin and crypto market has crashed this year, falling sharply after rising to around $3 trillion late last year (with some yet to hit bottom of the bitcoin price).
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Bitcoin price has crashed below $20,000 per bitcoin, falling from nearly $70,000, as the market grapples with the Federal Reserve’s series of rate hikes that could mean more volatility for bitcoin.
Now the Biden administration has instructed US 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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US President Joe Biden issued an executive order in March, urging government departments and … [+]
A series of reports from the White House urged regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to issue regulations for cryptocurrencies.
“Digital assets pose a meaningful risk to consumers, investors and businesses,” the Biden administration said, adding that there are “frequent cases of operational failure, market manipulation, fraud, theft and fraud.”
Research suggests that at least $1 billion has been lost to crypto fraud since the start of 2021, according to the Federal Trade Commission, with the collapse of major cryptocurrency luna and its associated stablecoin terraUSD raising fears that people could lose their investments.
“The reports clearly identify the real challenges and risks posed by 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 new technologies can offer significant opportunities.”
However, Yellen went on to warn that a lack of regulation risks repeating “painful” lessons.
“Innovation is one of the hallmarks of a vibrant financial system and economy, but as we have painfully learned from history, innovation without adequate regulation can result in significant disruption and harm to the financial system and individuals.” Reuters Yellen was quoted as saying.
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The Bitcoin price has fluctuated wildly over the past month.
Regulators have recently stepped up their scrutiny of the bitcoin and crypto market, with the SEC branding a number of cryptocurrency assets and fighting a long-running battle with XRP cryptocurrency developer Ripple.
“The reports urge regulators, as they deem appropriate, to scale up investigations of misconduct in the digital asset market, redouble their enforcement efforts and strengthen interagency coordination,” National Security Adviser Jake Sullivan and Brian Deese, director of the National Economic Council, said in a statement .
