The Biden administration recently had a meeting with central bankers and lawmakers to address what the administration sees as “gaps” in how oversight of the digital assets market is currently carried out in the United States.
During the sitting, members of the Treasury Department informed officials from the White House of what they considered to be potential hazards posed by an under regulated digital assets market. This should not come as a surprise, as the Treasury Department has already expressed a desire to tighten the rules on cryptocurrency transfers.
Among the “gaps” that the administration is looking into is the possibility of crypto currencies being used as means to finance terrorist activities. This particular concern has been raised before – by previous administrations and other governments, however, very little evidence such activities has ever been reported on.
The high volatility of the digital assets market was also up for discussion. Though regulators don’t see the turbulence in crypto as a threat to the vitality of financial markets as a whole, they do, however, feel that it is worth keeping a close eye on how the situation progresses.
“They’re aware of the fact that there are all kinds of risks in the abstract and things to look out for, but they are still largely in a wait-and-see posture,” said one person who is familiar with the debriefing.
For now, regulators in the US are looking to setup “guardrails” on digital assets trading while maintaining investor’s freedom to “dogecoin to their Heart’s content”
