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After a tumultuous year in cryptocurrency markets, the Biden administration has recommended that Congress enact legislation to regulate the spot market for non-securities cryptocurrency assets, according to the Financial Stability Oversight Board's 2022 annual report. report issued Friday.
It also recommended steps to "address regulatory arbitrage and an assessment of whether vertically integrated market structures can or should accommodate existing laws and regulations," according to the report.
While there was substantial volatility in digital assets during the year, leading to the bankruptcies of Celsius Network, FTX and BlockFi, "the crypto-asset ecosystem had no noticeable effects on the traditional financial system," the FSOC said. That could change quickly if more interconnections between cryptocurrencies and traditional finance develop.
Some potential sources of interconnections include the reserve assets of stablecoin issuers held by traditional financial institutions and crypto-asset trading platforms that expand leveraged trading and asset clients to a variety of retail investors and traditional financial institutions. , said.
As part of the Treasury Department, the FSOC falls under the executive branch of the United States government.
Most crypto tokens have been in the red for much of Friday. bitcoin (USD-BTC) has fell 3.3% in the last 24 hours at $16.8K, ethereum (ETH-USD) -6.0% At just under $1.20K, Binance Coin (USD-BNB) -6.6%and undulation (USD-XRP) -4.5%.
Stocks related to cryptocurrencies are also falling. Digital Marathon (MARY) -9.9%riot blockchain (RIOT) -6.8%Bitfarms (BITF) -6.7%Coinbase Global (CURRENCY) -4.8%Microstrategy (MSTR) -6.8%and Bakkt Holdings (BKKT) -7.5%.
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