White House Releases Crypto Roadmap To Mitigate Crypto-Related Risks
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What Does the White House Crypto Roadmap Outline?
The authors of the statement outlined a two-pronged path forward. The first element in the road map is the administration’s “first-ever” comprehensive framework for digital asset development released in September. That document was based on reports mandated by the president’s executive order on Ensuring Responsible Development of Digital Assets issued in March.
Second, executive agencies are increasing enforcement and issuing new guidance. According to the statement, government agencies are developing public awareness programs “to help consumers understand the risks of buying cryptocurrencies.” It mentioned banking regulators in particular and encouraged them to continue their efforts. The statement was issued the same day the Fed denied digital asset Custodia Bank membership in the Federal Reserve System.
The Statement Also Highlights Actionable Points
Notably, the statement went on to provide a wish list of actions the administration would like to see from Congress. The White House has a sizable list of tasks for legislators. Its recommendations include expanding regulators’ powers, strengthening disclosure requirements, strengthening penalties for misconduct, increasing funding for law enforcement, and following the advice found in the Financial Stability Oversight Council report mandated by the executive order.
Limiting such actions prevented the spread of the “turmoil in cryptocurrencies” to the broader financial system, the statement noted.