Bitcoin, Ethereum, and other cryptocurrencies had a “Tough Year” in 2022, according to Biden administration officials —facilitate a devastating federal reserve blow.
Bitcoin’s price plummeted from around $70,000 per bitcoin in late 2021 to around $23,000 today, helping to wipe out $2 trillion from the combined crypto market. Bitcoin has surged so far in 2023, up 40% (Top Goldman Sachs 2023 Wealth Rankings) and other major coins Ethereum, BNB are pushing up the price BNB, XRP, Cardano, Dogecoin, Polygon, Solana.
Now, the Biden administration has said Congress needs to “increase its efforts” to regulate bitcoin and the cryptocurrency market, and allowing cryptocurrencies to deepen their relationship with the broader financial system would be “critical.” He warned that it would be a mistake.
U.S. President Joe Biden last year signed a virtual currency executive order
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“Over the past year, traditional financial institutions had limited exposure to cryptocurrencies, which prevented cryptocurrency turmoil from affecting the broader financial system,” four senior U.S. officials from the Biden administration said in a statement. We’ve done it,” he said, urging Congress to “step up” its regulatory efforts. The cryptocurrency market after many crypto bills were introduced.
“It would be a grave mistake to enact legislation that would reverse course and deepen the relationship between cryptocurrencies and the wider financial system.”
Last year, some of Wall Street’s biggest giants began to venture into the world of Bitcoin and crypto.
BlackRock, the world’s largest asset manager, has partnered with Bitcoin and cryptocurrency exchange Coinbase, along with Goldman Sachs, JP Morgan and Wells Fargo. Fidelity, one of the world’s largest financial institutions, has drawn criticism from regulators and lawmakers over its 401k plan to allow bitcoin allocations.
Congress expands the powers of regulators, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), strengthens transparency and disclosure requirements for crypto companies, and increases funding for law enforcement. They advised on the heels of President Joe Biden’s crypto executive order last March and the White House’s “comprehensive” framework for crypto development in September.
Bitcoin’s price has been volatile over the last few years, and previously surged at breakneck speed.
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This statement has been widely welcomed by the crypto industry, which is still reeling from the collapse of FTX and its implications.
“This is the first media statement from the White House on the matter since the event in late 2022,” Sheila Warren, chief executive of the lobby group Crypto Council for Innovation, said in an emailed statement. said.
“It is rooted in the public policy goals we expect from governments after events like this: to hold bad actors accountable, protect investors, and ensure financial stability. We acknowledge that the human behaviors that lead to the failure of cryptocurrencies are neither new nor unique to cryptocurrencies.”
But Warren cautioned against heavy-handed or hasty legislation.
“It is important to have careful, evidence-based conversations and get the legislation right. I support the call,” she said.
However, Binance CEO Changpeng “CZ” Zhao said: warned Via Twitter, Last Year’s $2 Trillion Bitcoin and Cryptocurrency Price Collapse Procrastinates “Traditional Financial Players” [adoption] of [bitcoin, crypto and blockchain] technology” and “will likely fall further behind on the adoption curve, which could have survival implications for them.”
