- Congress is now looking into the stablecoin sector and other tax laws for crypto brokers.
- The FSOC report calls for the establishment of a legal framework for stablecoin issuers.
The Biden administration has urged Congress to act swiftly to establish a stable regulatory framework for cryptocurrencies. It is becoming more obvious that countries throughout the world are adopting cryptocurrencies. Despite certain nations’ lack of support, the cryptocurrency market remains popular among investors.
This is true in a number of countries where the government is unsure of how it feels about cryptocurrency but where investors have found ways to get their hands on it. There has been a new report out from the Biden administration urging Congress to act quickly to regulate cryptocurrencies.
Much Needed Clarity
The US Financial Stability Oversight Council (FSOC), which consists of the nation’s top financial regulators and also includes the Treasury, presented a report on Monday in which it encouraged Congress to achieve a consensus on a number of topics. Among these considerations is the question of how to control the spot market for cryptocurrencies such as bitcoin.
Congress is now looking into the stablecoin sector and other tax laws for crypto brokers, so the timing of the research couldn’t be better. There is worry inside the Biden administration, too, that the Terra-LUNA disaster may happen again. Yet the legislators insist that it will be months before they pass the necessary laws.
The report states:
“Some crypto asset businesses may have affiliates or subsidiaries operating under different regulatory frameworks, and no single regulator may have visibility into the risks across the entire business.”
Furthermore, FSOC recommends that Congress enact regulations on cyber security, customer asset segregation, and other such issues. The FSOC report also calls for the establishment of a legal framework for stablecoin issuers and the approval of legislation to provide regulators access to the subsidiaries of crypto platforms.
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