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| Photo by Aaron Kittredge |
White House Releases Roadmap To Mitigate Crypto Risks
During Friday afternoon the White House administration revealed a roadmap in order to mitigate the risks of cryptocurrencies. This was announced in a press release signed by Brian Deese, Arati Prabhakar, Cecilia Rouse and Jake Sullivan.
The administrations discloses its concerns about the cryptocurrency markets instability. The release mainly points fingers at the "stablecoin that imploded in May" [paraphrased], clearly referring to the collapse of the stablecoin Terra back in 2022.
At the moment it's unclear how this will affect Algorand or any other blockchain, as it also depends on what practical decisions the administration is able to push through in congress.
"As an administration, our focus is on continuing to ensure that cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable. At President Biden’s direction, we have spent the past year identifying the risks of cryptocurrencies and acting to mitigate them using the authorities that the Executive Branch has. "
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Fighting Fraud and Financial Risks
The White House expressed its concern with the increase in fraud and crimes in regards to cryptocurrencies, and then indicated that the administration is going to step up both its legal and practical commitment in order to stop these types of behaviors.
Agencies have redoubled their efforts to fight fraud, including the proliferation of false or misleading claims about crypto assets being insured by the FDIC. And while the United States is already a global leader in fighting money laundering and terrorist financing, enforcement agencies are devoting increased resources to combatting illicit activities involving digital assets.
Moreover, the roadmap talks about the financial and geopolitical risks connected to crypto, as well as consumers being tricked into losing their money.
"In addition, cryptocurrency platforms and promoters often mislead consumers, have conflicts of interest, fail to make adequate disclosures, or commit outright fraud. And there is poor cybersecurity across the industry that enabled the Democratic People’s Republic of Korea to steal over a billion dollars to fund its aggressive missile program."
Read the full roadmap by the White House here.
