US Treasury Pushes Crypto Regulatory Framework
U.S. Treasury Deputy Assistant Secretary for Financial Institutions Graham Steele emphasized the need for regulatory standards in the crypto industry. Steele during an event at George Washington University School of Law highlighted It’s an opportunity for US lawmakers to create regulatory frameworks before any potential crisis arises in the crypto industry.
Drawing parallels with past financial regulations such as the Dodd-Frank Act, Steele called for similar forward-thinking measures in the emerging field of cryptocurrencies.
The US Treasury’s Role in Crypto Custody
Executive order issued by the President last year joe BidenBy focusing on the responsible development of digital assets, the company has taken a significant step towards comprehensive crypto regulation. This directive not only emphasized consumer protection and financial stability, but also addressed climate risks and national security concerns.
Steele referenced Treasury Undersecretary This order includes the responsibility to produce reports on crypto that underscore the need for robust enforcement of existing laws to ensure consumer and investor protection.
Steele also shed light on the practical applications of cryptocurrencies, highlighting their potential to facilitate cross-border payments, enable faster payments and provide immutable ledgers. However, he cautioned against speculative assets like dogecoin, implying the need to distinguish between valid crypto uses and pure speculation.
ripple CEO Reflects Regulatory Sentiments
Ripple CEO echoing Steele’s sentiments Brad GarlinghouseSpeaking at the World Economic Forum in Davos, he acknowledged the speculative nature of the crypto industry. He emphasized the importance of identifying and developing practical applications of crypto technologies by separating the ‘wheat from the chaff’.
FTX Fallout and Financial Stability
Latest developments were also mentioned in the discussion FTX bankruptcy, showing risks and vulnerabilities in the crypto market. Steele pointed out that despite these difficulties, the financial stability of the United States was largely unaffected, thanks to the cautious approach of federal banking institutions.
But he underlined the importance of learning from past financial crises to avoid regulatory traps that could lead to consumer manipulation and threats to financial stability.
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
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