In a new report, the White House takes aim at cryptocurrencies, claiming that several components of the digital asset ecosystem are causing problems for consumers, the financial system, and the environment.
The President’s Economic Report, released on Monday, is an annual publication of the Council of Economic Advisers that explains the President’s economic priorities and strategies. An whole chapter on digital assets and “economic concepts” was included in the March 2023 issue.
Monday’s allegation comes amid growing industry worry that federal regulators are attempting to de-bank crypto businesses, while both state and federal regulators have refuted these assertions thus far. Yet, the tone of the report is unlikely to allay these fears.
Former New York Department of Financial Services deputy superintendent Matthew Homer told CoinDesk that the report was a “damning indictment of the space that makes their policy perspective crystal apparent.”
“The level of attention paid to digital assets is significant, especially when compared to other areas of financial services that have arguably been significantly more harmful in recent weeks. The critique is notable for its firm tone and broad brush strokes “He stated.
The report examined a number of claims and stated goals from the crypto industry, ranging from cryptocurrencies’ role as investment vehicles and payment tools to their potential use in payment infrastructure, concluding that “many of them lack fundamental value” and highlighting other issues with the sector.
“It has been suggested that crypto assets may provide additional benefits such as improving payment systems, increasing financial inclusion, and developing mechanisms for the distribution of intellectual property and financial value that avoid intermediaries who extract value from both the provider and the recipient. Digging deeper into these arguments, however, reveals a more nuanced picture. So yet, crypto assets have provided none of these advantages “According to the report.
Many crypto-related tragedies, like last year’s TerraUSD crash, BitConnect, and FTX, were mentioned as examples of how ordinary Americans were hurt.
Other examples included Long Island Iced Tea changing its name to Long Blockchain to capitalize on a stock price surge despite having nothing to do with blockchain at the time.
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- Source: https://bitcoinworld.co.in/white-house-takes-aim-at-crypto-in-scathing-economic-report/