Biden team pushes for crypto regulation through congress

Four senior officials in the Biden administration are calling for the US Congress to regulate the cryptocurrency market.

The officials believe it would be a “grave mistake” to further connect crypto and traditional finance due to the risk of broader consequences.

They point to the limited exposure of traditional financial institutions to cryptocurrencies as the reason why turmoil in the crypto market has not infected the broader financial system.

The announcement follows a “tough year” for cryptocurrencies, including the collapse of Terra-Luna’s stablecoin and FTX.com crypto exchange.

The officials urge Congress to expand regulators’ powers, increase transparency for crypto companies and pass stablecoin legislation.

The House of Representatives recently created a new subcommittee focused on digital assets.