Biden Issues Warning About Crypto

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( – The White House is asking Congress members to be diligent when dealing with cryptocurrency legislation saying that it would be a “grave mistake” to have cryptocurrency more linked with the financial system.

White House officials Brian Deese, Arati Prabhakar, Cecilia Rouse, and Jake Sullivan on Friday released a letter that would act as a guide towards reducing the risks of cryptocurrency. The letter was widely taken into account the collapse of the crypto market in 2022. In the letter, they also noted that they would work to ensure that cryptocurrencies could not have any effect on the country’s financial stability.

In the letter, they further wrote that it was up to Congress to also assist with these efforts, by not focusing on legislation that would allow people to invest their pension funds and other mainstream institutions into the cryptocurrency markets.

The four officials further noted that the limits in the reach of cryptocurrencies into traditional institutions are what have allowed the ups and downs of cryptocurrencies to not affect the financial systems within the country. They added that a change in this approach where the financial systems and cryptocurrencies were more closely linked could lead to “clear risks.” They further added that additional risks to cryptocurrency came from the cryptocurrency entities being able to not follow “financial regulations and basic controls” that are currently in place.

Other risks relating to cryptocurrency platforms include misleading consumers, not providing disclosures, and committing fraud. They added that safeguards must be put in place in order to ensure that this new “digital economy” can be helpful and work for everyone, not just a select few.

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