The Biden administration has identified a roadmap it plans to use to address the diverse risks associated with the proliferation of cryptocurrencies and digital assets.
There's a new ad, Biden officials say they spent the "past year identifying cryptocurrency risks and taking action to mitigate them by using the powers the executive branch has."
Those responsible that the different events in 2022 highlight the need for a cohesive strategy to keep an eye on cryptography, including the implosion of Terra () and the highly publicized crash of the FTX crypto exchange.
The Administration says it has brought together experts to establish the "first ever digital asset development framework in a safe and responsible way while addressing the risks it poses."
They also say that government agencies increase enforcement, if necessary, without naming a company or a coin.
“This month, the banking agencies published common guidelines on the need to separate risky digital assets from the banking system. Government-wide organizations have initiated or are developing public education programs to help consumers understand the risks associated with purchasing cryptocurrency. We encourage regulators to pursue these efforts, including those aimed at mitigating and limiting the exposure of financial institutions to the risks associated with digital assets."
The White House recommends that traditional institutions, such as pension funds, not be allowed to "dive headlong" into crypto assets. Although the Authority recognizes its support for innovation in financial services, protection measures must first be in place.
“The Authority fully supports responsible technology innovations that make financial services more affordable, timely, secure and accessible. To achieve these advantages, new technologies require proportionate protection measures. Safeguards will ensure that new technologies are safe and mutually beneficial – and that the new digital economy works for as many people as possible, not just a few. To put in place the appropriate safeguards, we will continue to advance the digital asset framework we have developed, while working with Congress to achieve these goals."