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Top US Regulators Urge Congress to Pass Legislation on Crypto Assets

Top US Regulators Urge Congress to Pass Legislation on Crypto AssetsThe U.S. Financial Stability Oversight Council (FSOC), a group of the country’s top financial regulators, has urged Congress to pass legislation for the regulation of crypto assets. Treasury Secretary Janet Yellen said: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to […]

Top US Regulators Urge Congress to Pass Legislation on Crypto Assets

The U.S. Financial Stability Oversight Council (FSOC), a group of the country’s top financial regulators, has urged Congress to pass legislation for the regulation of crypto assets. Treasury Secretary Janet Yellen said: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.”

U.S. Financial Stability Oversight Council’s Recommendations

The U.S. Financial Stability Oversight Council (FSOC) published its “Report on Digital Asset Financial Stability Risks and Regulation” Monday. The 124-page report includes 10 recommendations for the regulation of crypto assets.

The FSOC, chaired by the Treasury Secretary, is a group of the country’s top financial regulators. It is made up of 10 voting members and five nonvoting members. The voting members include the Treasury Secretary, the Federal Reserve chairman, the Comptroller of the Currency (OCC), the chairman of the Securities and Exchange Commission (SEC), and the chairman of the Commodity Futures Trading Commission (CFTC).

Treasury Secretary Janet Yellen described at the FSOC meeting Monday that the report “identifies a number of material gaps in current regulation, and recommendations to address these gaps.”

Firstly, the council recommends that member agencies should consider general principles when dealing with crypto assets, such as “same activity, same risk, same regulatory outcome” and “technological neutrality.” Regulators should also “continue to enforce existing rules and regulations” and “coordinate with each other in the supervision of crypto-asset entities.”

Another recommendation states:

The Council recommends that Congress pass legislation that provides for explicit rulemaking authority for federal financial regulators over the spot market for crypto-assets that are not securities.

The council also urged Congress to “pass legislation that would create a comprehensive federal prudential framework for stablecoin issuers that also addresses the associated market integrity, investor and consumer protection, and payment system risks.”

Moreover, council members should “continue to build their capacity to analyze and monitor crypto-asset activities and allocate sufficient resources to do so.” The report further details:

The Council also recommends that Congress appropriate necessary resources to member agencies for supervision and regulation of crypto-asset activities.

Citing the FSOC report, Yellen noted: “Crypto-asset activities could pose risks to U.S. financial stability if their interconnections with the traditional financial system or their overall scale were to grow without adherence to or being paired with appropriate regulation, including enforcement of the existing regulatory structure.”

Federal Reserve Chairman Jerome Powell said at the FSOC meeting, “I support this report and its recommendations,” elaborating:

It is important to establish a thorough prudential framework to address the risks of digital assets. Acting now allows us to support responsible innovation while preserving financial stability.

What do you think about the recommendations by the Financial Stability Oversight Council? Let us know in the comments section below.

Source: Regulation Archives – Bitcoin News

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Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset Agenda

Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset AgendaAccording to Lamido Yuguda, the director general of the Nigerian Securities and Exchange Commission, the regulator does not plan on including cryptocurrencies in its digital asset agenda. Yuguda reportedly said the commission will only change its stance on cryptos when Nigerian regulators agree on the standards to protect digital asset investors. Commission to Promote ‘Sensible […]

Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset Agenda

According to Lamido Yuguda, the director general of the Nigerian Securities and Exchange Commission, the regulator does not plan on including cryptocurrencies in its digital asset agenda. Yuguda reportedly said the commission will only change its stance on cryptos when Nigerian regulators agree on the standards to protect digital asset investors.

Commission to Promote ‘Sensible Digital Assets’

The Nigerian Securities and Exchange Commission (NSEC) said it will only include cryptocurrencies in its digital assets agenda when regulators finally agree on the standards to protect investors. The commission added that cryptocurrencies are currently excluded because the exchange platforms where such digital assets are traded are operating outside of the Nigerian banking system.

According to a Bloomberg report, the NSEC is keen on promoting what the institution’s director general Lamido Yuguda calls “sensible digital assets.” Yuguda explained:

The commission is in the business of protecting investors, not in the business of speculation.

In addition to promoting safer digital assets, the commission reportedly said it will explore blockchain’s use in advancing virtual and traditional investment products.

In May, the NSEC unveiled new rules governing the issuing of digital assets as well as the registration requirements for platforms that offer digital assets. At the time, some in the Nigerian crypto community believed the new rules applied to cryptocurrencies. While Yuguda admitted that cryptos are presently excluded, he did not rule out including them in the future.

“Any asset that is traded in the Nigerian capital market requires the joint approach of different regulators,” the director-general reportedly said.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Source: Regulation Archives – Bitcoin News

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