Top US Regulators Urge Congress to Pass Legislation on Crypto Assets – Regulation Bitcoin News

The U.S. Financial Stability Oversight Council (FSOC), a bunch of the nation’s prime monetary regulators, has urged Congress to cross laws for the regulation of crypto belongings. Treasury Secretary Janet Yellen mentioned: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.”

U.S. Financial Stability Oversight Council’s Recommendations

The U.S. Financial Stability Oversight Council (FSOC) revealed its “Report on Digital Asset Financial Stability Risks and Regulation” Monday. The 124-page report consists of 10 suggestions for the regulation of crypto belongings.

The FSOC, chaired by the Treasury Secretary, is a bunch of the nation’s prime monetary regulators. It is made up of 10 voting members and 5 nonvoting members. The voting members embrace the Treasury Secretary, the Federal Reserve chairman, the Comptroller of the Currency (OCC), the chairman of the Securities and Exchange Commission (SEC), and the chairman of the Commodity Futures Trading Commission (CFTC).

Treasury Secretary Janet Yellen described on the FSOC meeting Monday that the report “identifies a number of material gaps in current regulation, and recommendations to address these gaps.”

Firstly, the council recommends that member companies ought to think about common ideas when coping with crypto belongings, comparable to “same activity, same risk, same regulatory outcome” and “technological neutrality.” Regulators must also “continue to enforce existing rules and regulations” and “coordinate with each other in the supervision of crypto-asset entities.”

Another advice states:

The Council recommends that Congress cross laws that gives for express rulemaking authority for federal monetary regulators over the spot market for crypto-assets that aren’t securities.

The council additionally urged Congress to “pass legislation that would create a comprehensive federal prudential framework for stablecoin issuers that also addresses the associated market integrity, investor and consumer protection, and payment system risks.”

Moreover, council members ought to “continue to build their capacity to analyze and monitor crypto-asset activities and allocate sufficient resources to do so.” The report additional particulars:

The Council additionally recommends that Congress acceptable crucial resources to member companies for supervision and regulation of crypto-asset actions.

Citing the FSOC report, Yellen famous: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.”

Federal Reserve Chairman Jerome Powell mentioned on the FSOC meeting, “I support this report and its recommendations,” elaborating:

It is vital to set up a radical prudential framework to deal with the dangers of digital belongings. Acting now permits us to help accountable innovation whereas preserving monetary stability.

What do you consider the suggestions by the Financial Stability Oversight Council? Let us know within the feedback part under.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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