Biden Administration's Roadmap to Mitigate Cryptocurrency's Risks

The focus of the roadmap is to ensure that:

• Cryptocurrencies do not undermine financial stability,
• Investors are protected,
• Bad actors are held accountable.

Providing further insights into the future of US regulation of cryptocurrency, the statement highlights that Congress should step up its efforts to:

• Expand regulators’ powers to prevent the misuse of customer assets,
• Strengthen transparency and disclosure requirements for crypto companies to protect investors and allow them to make more informed decisions,
• Strengthen penalties for violating illicit-finance rules and subject crypto firms to bans against tipping-off criminals,
• Limit crypto risks to the financial system in line with the recent Financial Stability Oversight Council report.

Relevant firms should remain alert to the ongoing developments relating to cryptocurrency regulations and guidance in the U.S. and other markets.