Crypto Regulations in the U.S.
Adekunle Joshua
U.S. has a mixed approach towards the crypto market
Some in Congress are seeking a new framework to support the industry, whereas regulators aim to crack down on money laundering, scams, and cybercrime
The Biden administration signed an executive order to assess the risks and benefits of cryptocurrencies in March 2022
In 2023, a roadmap was released for mitigating crypto risks which encouraged enforcement and expanding regulators' powers
The FDIC, Federal Reserve, and OCC also highlighted risks posed to traditional financial systems by crypto assets
In the U.S., banks are not prohibited from providing crypto services, but certain practices are inconsistent with safe banking practices
U.S. government focuses on regulating crypto platforms instead of directly regulating them
SEC Chair Gary Gensler stated that unregulated crypto platforms should not be used as qualified custodians by advisors
The classification of crypto as a security is a crucial issue. This debate predates the SEC charging FTX for defrauding investors of over $1.8 billion
U.S. aims to bridge a balance between the crypto market and protecting investors from risks such as fraud and money laundering