THE ADMINISTRATION ROADMAP TO MITIGATE CRYPTO RISK

The White House recently public statement about cryptocurrency titled the administration roadmap to mitigate crypto risk. As far as I can tell, it is a day factor in response to the collapse of FTX and Alameda and a part 2 to a previous crypto statement. The difference between this statement and the previous one is that this one is shorter and more to the point. The author starts by highlighting all the bad things that happened in the last year. They revealed that the White House spent the year accessing the risk of cryptocurrency. They rightfully take issue with misleading claims from cryptocurrency platforms and so-called cryptocurrency promoters.

---

This seems to imply that these misleading claims are about as bad as North Korean hackers stealing crypto. The author also revealed that US regulators are in the process of launching public awareness programs to warn about the risk of cryptocurrency. They encourage such campaigns especially as they pertain to private financial institutions interested in crypto. The author calls on Congress to pass crypto regulation that separates the industry from the traditional financial system, notably Pension funds. This is not so subtle reference to Fidelity which is offering BTC in its 401k accounts. The statement concludes by saying that the White House will continue driving forward the digital asset framework with the help of with the help congress.

---

The thing is that the current administration's digital asset framework is not entirely clear and seems to contain regulations by enforcement via SEC. As with the Cardano peculiar node outage, one can't help but wonder why the administration is making this announcement at this particular time. It could simply be because it is the beginning of a new political year and they want to make their crypto intentions clear. Alternatively, it's quite possible that it could be a rallying cry for regulators to begin a collective crackdown on cryptocurrency. This is in part because the U.S. government is short of money. After all, the debt ceiling is reached, meaning it would be hard to finance new crypto legislation. It is also in part because the partisan politics that caused the debt ceiling to stay where it is mean it's unlikely that Congress will come to a consensus about cryptocurrency either. It also means raising the debt ceiling is likely going to be the number one priority of the current administration. The good news is that a focus on the debt ceiling means that cryptocurrency is unlikely to get much congressional attention anytime soon.

Reference