Financial regulators in the United States have issued a new report urging Congress to pass comprehensive crypto legislation.
The report, issued by the Financial and Consumer Protection Bureau, the Federal Trade Commission, and the Federal Deposit Insurance Corporation, recommends that Congress pass legislation that would create a clear and consistent legal framework for the crypto industry. The report specifically calls for a national licensing system for crypto exchanges, regulations for the storage of digital assets, and measures to prevent investor fraud and manipulation.
The report also recommends that the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have oversight of the crypto markets and related activities, and that the Internal Revenue Service (IRS) develop rules for the taxation of digital assets.
The report highlights the need for regulatory clarity in the crypto space, noting that current inadequate legal frameworks and inadequate enforcement are hindering the growth of the cryptocurrency market and leaving consumers at risk. It further highlights the need for a level playing field for all participants in the market, including both institutional and retail investors.
The regulators also warned that failure to pass crypto-specific regulations could result in investors and businesses flocking to other markets that offer a more favorable regulatory environment.
Overall, the regulators’ report suggests that comprehensive legislation is needed to ensure that the crypto industry can grow and flourish in a safe and secure way. It emphasizes that the US should adopt a “balanced approach” in its regulation of the space, taking into account both the need to protect investors and consumers and the potential of the technology to innovate and drive economic growth.