The U.S. government is set to tighten regulations to mitigate the growing risks associated with the crypto industry. This development comes after increased scrutiny following the collapse of FTX and Terra Luna in 2022. In a press release on January 27, the White House put forward a comprehensive roadmap designed to protect investors and hold bad actors accountable. The roadmap highlighted several measures for more effective regulations in the crypto industry. A Two-Pronged Approach By U.S. Government The U.S. government revealed that it had spent the past two years identifying the risks of cryptocurrency and finding ways to mitigate them. To ensure these measures are implemented, the White House intends to utilize a two-pronged approach. Firstly, the U.S. government has developed a framework for individuals and organizations to safely and responsibly develop digital assets. This includes addressing the risks they pose as well as highlighting poor practices within the crypto industry. Secondly, agencies have been mandated to increase enforcement and develop new regulations where needed. While there’s an increase in public awareness programs designed to help consumers understand the risks of buying cryptocurrencies. Related Reading: US Federal Regulators Warn About Crypto Activities The White House also pointed out that Congress had a major role in expanding regulators’ powers and passing transparency laws for cryptocurrency companies. It also warned about passing legislation that would reverse the current gains and tie cryptocurrency with the U.S. financial system. In addition, the government intends to commit significant resources toward digital assets research and development, and this would help technologies power digital currencies and protect investors by default. Crypto Industry Still Reeling From FTX Collapse The crypto industry is still recovering from the bearish markets resulting from several CeFi platforms’ high-profile collapses. 3AC, Voyager, BlockFi, and FTX were among the top platforms to file for bankruptcy, with the quartet holding more than $100 billion in assets. The nature of FTX collapse brought about increased scrutiny of the crypto industry. Congress testimonials exposed the risk-averse nature of crypto companies’ executives as details emerged that Sam Bankman-Fried misused clients’ funds through his trading firm Alameda Research. The ripple effect was massive as several individuals and firms exposed to the platform suffered huge losses, with some companies forced to shut down. These events caused concerns and reactions from within and outside the crypto space. It is, therefore, unsurprising that the U.S. government is looking to tighten its grip on regulations. Related Reading: Crypto-Friendly Bank Silvergate Suspends Dividend Payouts Months after the FTX crash, there’s still increased skepticism about the crypto industry. There’s an increase in the amount of bitcoin withdrawn from exchanges, and earlier this month crypto bank, Silvergate revealed that clients withdrew almost $8 billion of their crypto deposits. Featured image from Pixabay, chart from TradingView.com
View full article at NewsbtcBackground https://unsplash.com/photos/p9btBc7HdTE
Quant Hedge Fund Two Sigma Hirin...
Cream Plunges on News That Hack ...
Indian National Congress Accuses...
CoinTelegraph (cointelegraph.com)
Blockchain-based private loans h...
Bitcoin won’t be beaten as dig...
Daily gas spent on EVM inscripti...
Bitcoin News (news.bitcoin.com)
Reserve Bank of New Zealand Rele...
Halving Milestone: Block 840,000...
Bitcoin Miners Ramp Up Hashrate ...
IRS Reveals Preliminary Tax Repo...
Binance CEO Vows Cooperation Wit...
Komodo CTO Warns That Bitcoin Is...
DTX Set for a 500% rise outshini...
BlockDAG Captures the Limelight ...
ETH Ecosystem Continues to Face ...
FTX investors agree to drop civi...
Hong Kong-based HashKey to cease...
FTX empties FTT treasury wallet,...
Uniswap Resurgence Incoming? Ana...
Shiba Inu Burn Rate Sees 81% Dai...
Bitcoin Halving Could Catalyzed ...
CryptoGazette (cryptogazette.com)
Another Day, Another Banking Sca...
US Banking Giant Pays $249,000,0...
Cardano To Explode by Over 1,300...
Bitcoin’s $109M outflow: A dip...
Shiba Inu: Should you trust this...
BAYC’s 3-year low: Will NFT ma...
Solana Fans Swarm to Rising Cryp...
Will Bitcoin Halving Spell Doom ...
Israel-Iran Conflict To Push Bit...
Celebrities May Have Their Dirty...
3 Ways Bitcoin Traders Can Spot ...
Blockchain as an Infrastructure:...
BinaryX Releases RhinoX Whitepap...
StreamCoin’s 1st Anniversary: ...
Ukrainian Real Agriculture Busin...
Benchmark Protocol (medium.combenchmarkprotocol)
Benchmark Protocol celebrates 1 ...
Benchmark Protocol Integrates Ch...
Bitcoin Magazine (bitcoinmagazine.com)
ViaBTC Just Mined the 4th Ever B...
MicroStrategy to Host Bitcoin Fo...
Bitcoin.com (news.bitcoin.com)
Foundry to Isolate and Monetize ...
SEC Amends Lawsuit Against Tron ...
Bitcoin Barely Bobbles After Hal...
The Race Is On to Mint One of th...
Volatile Roller Coaster: BTC Jum...
Weeks after Solana’s meme coin...
Two years after blowing up his o...
This Bitcoin halving is the most...