Why Joe Biden is speeding up crypto regulation in the US
|- The Biden administration has urged Congress to speed up crypto regulation after the UN warns of an upcoming global recession.
- Greater regulation will increase cryptocurrency adoption according to one US independent agency.
- Bitcoin continues flowing out of exchanges amid recession fears, in the ongoing bear market.
The Biden administration is working on an accelerated rollout of the regulatory framework for digital assets and crypto currencies as the United Nations warns of an upcoming recession.
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Pressure is mounting on the United States to speed up crypto regulation
The US Financial Stability Oversight Council issued a report on October 3, urging lawmakers to regulate cryptocurrency spot markets. This has prompted the Biden administration to urge Congress to speed up a prescription to regulate crypto markets, as further delays could put investors at risk.
The United Nations recently published a report, warning of a Fed-induced global recession. While officials close to the congressional negotiations believe a crypto legislation is months away, the pressure to regulate crypto has increased.
Sources close to the matter believe nothing is likely to happen in 2022. Both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been grappling for some time for the authority to regulate digital assets.
The SEC currently regulates cryptocurrency exchanges and projects through enforcement while the CFTC has come forward as a regulator of cryptocurrency exchanges.
UN report warns of a Fed-induced recession
The United Nations Conference on Trade and Development (UNCTAD) issued a report on October 3, 2022, which states that economic growth will slow down to 2.2% in 2023.
The economic slowdown will cost the world economy $17 trillion. In a statement accompanying the report, the UN argued,
Any belief that they (central banks) will be able to bring down prices by relying on higher interest rates without generating a recession is, the report suggests, an imprudent gamble.
Rebeca Grynspan, UNCTAD Secretary-General was quoted in a press conference in Geneva,
If you want to use only one instrument to bring inflation down…the only possibility is to bring the world to a slowdown that will end up in a recession.
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