In a new report from the U.S. Financial Stability Oversight Council (FSOC), the country’s top financial regulators urged Congress to pass legislation and create new regulations to better protect consumers and businesses dealing in cryptocurrencies and other digital assets.
The FSOC, which is comprised of the chairs and CEOs of the Federal Reserve, FDIC, SEC, CFTC, and other government and quasi-public bodies, argued that Congress needs to act now in order to ensure that the proper safeguards are in place to protect against risks posed by cryptocurrencies and other digital assets. The FSOC highlighted the need for increased scrutiny on activities such as trading, clearing, and settlement in the cryptocurrency markets.
The report further called on Congress to consider how new regulations could better protect investors, including creating investor-protection rules that will help ensure accuracy and transparency when cryptocurrencies and digital assets are traded. The report also suggested that Congress should establish an oversight agency to monitor the market and enforce compliance with the proposed regulations.
The FSOC report marks the latest in a series of recommendations that U.S. regulators have made in recent years regarding the regulation of cryptocurrencies and digital assets. Recent months have seen increased calls from regulators, like the SEC, urging U.S. lawmakers to act quickly on crypto regulation and provide a safe and consumer-friendly environment for digital assets. It is now up to Congress to move forward and show its commitment to protecting consumers and businesses that use cryptocurrencies.