The White House has published a blog post titled “The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks” authored by four advisors. The blog lays out the “first-ever framework for developing digital assets in a safe, responsible way while addressing the risks they pose.”
The post was published under the National Economic Council (NEC), an Executive Office of the President established to advise the president on U.S. and global economic policy. It identifies a number of risks, including crypto entities ignoring financial regulations and risk controls, as well as fraud, conflicts of interest, and inadequate disclosures.
The authors said that “there is poor cybersecurity across the industry,” which has allowed North Korea to “steal over a billion dollars to fund its aggressive missile program.”
The post’s authors encourage regulators to keep on using their authority to “ramp up enforcement where appropriate and issue new guidance where needed.” They wrote:
“The events of the past year underscore that more is needed. Agencies have redoubled their efforts to fight fraud … Enforcement agencies are devoting increased resources to combatting illicit activities involving digital assets.”
The roadmap also calls on Congress to step up efforts in regulating the cryptocurrency sector, and suggests it could strengthen transparency and disclosure requirements for crypto firms. It also claimed that the limited exposure of traditional financial firms in the market prevented it [crypto] from affecting the broader financial system last year.