This significant announcement comes as the market for digital assets around the world continues to decline.
How might crypto regulation be impacted?
According to sources, the rules outline how the financial services industry should develop to make cross-border transactions simpler. While also focusing on putting an end to frauds in the cryptocurrency industry.
The recently adopted framework was created in accordance with the March executive directive. However, US President Biden asked federal organisations to examine the advantages and disadvantages of the cryptocurrency industry. According to the report, the new directives give regulators like the SEC and CFTC more clout. However, no specific watchdog has been given the power. But these much anticipated recommendations have caught the attention of both cryptocurrencies and emerging asset classes.
The report obtained, it was noted, encourages the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) to look into concerns. As a result, the monitoring and enforcement of unfair and abusive practices will be increased. This will create robust cryptocurrency restrictions.
Will SEC prevail in the legal contest?
New cryptocurrency regulations, according to US Economic Council Director Brain Deese, will put the US in a leadership position for the governance model. The Public Awareness Commission will direct financial education. The customer will benefit from knowing the hazards that are developing in the ecosystem of digital assets. Earlier, CoinGabbar claimed that SEC Chair Gary Gensler made a suggestion that the agency would give the CFTC some regulatory authority over cryptocurrencies.
Gensler acknowledged the importance of collaborating with Congress to bolster its sister watchdog. The CFTC may soon regulate some cryptocurrencies like bitcoin. He did point out that the SEC still needs more power to oversee and create regulations for the cryptocurrency industry.
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