The administration of President Joe Biden has recently released a regulatory framework for digital assets, but key participants in the space do not believe it adequate.
A fact sheet describing the steps taken to regulate the cryptocurrency industry was made public by the White House on Friday. Despite prior requests for a uniform regulatory framework, stakeholders in the industry have criticized the recently implemented plan, pointing out its many flaws.
The framework intends to “Protect Consumers, Investors, Businesses, Financial Stability, National Security, and the Environment,” according to the White House report. However, U.S. Representative Patrick McHenry pointed out that the plan is lacking in a number of crucial respects.
McHenry claims that the White House reports are an unacceptable surrogate for true “legislative clarity.” He further highlighted that the reports concentrate on the risks that digital assets pose rather than recognizing their critical contribution to fostering innovation in the United States.
Besides McHenry, the Blockchain Association excoriated the Biden Administration’s regulatory stance. According to Kristin Smith, Executive Director of the Blockchain Association, the United States has lost a chance to solidify its position as a worldwide leader in the cryptocurrency industry with this strategy.
Like McHenry, Smith mentioned that the reports lost sight of opportunities and moved their attention to crypto risks, skipping a chance to offer suggestions for promoting innovation in the industry.
“This is surprising given the clear instructions from the [executive order] and work from members of Congress to move things forward,” Warren added. Additionally, U.S. Senator Patrick Toomey said reports are not a sufficient substitute for actual regulatory measures.
The U.S. is ramping up crypto regulatory measures
Notwithstanding, a few industry experts have expressed satisfaction with the recently published reports. Ben Gray, General Counsel at FinTech firm Paxos Trust Company, commended the U.S. government. Gray noted his pleasure in the fact that the government is putting in efforts to make sure related agencies are enforcing the proper rules.
Cryptocurrency advocate U.S. Representative Jim Himes applauded the Biden Administration for the move. Himes expressed his delight in the fact that there is at least a move towards proper cryptocurrency regulation.
The nine reports came 6 months following President Biden’s executive order. The order that the president signed in March received several commendations from industry players. These recent reports have fallen short of the expectations of the broader crypto community.
The United States has recently ramped up its crypto regulatory approaches, as adoption sees a major spike. Nonetheless, the measures have met criticisms rather than acclaim. This is due in large part to the fact that major industry players believe these measures are likely to stifle innovation in the sector.
Last week the White House released a report highlighting the environmental concerns of crypto mining. In response, founder of MicroStrategy and Bitcoin maximalist, Michael Saylor noted that the reports are aimed at undermining Bitcoin. Saylor said the report is “full of misinformation generated and promulgated by unscrupulous crypto promoters.”