FX.co ★ Cryptocurrency regulation

The White House has published a new report that urges US policymakers to consider legal restrictions or outright restrictions on cryptocurrency mining in order to reduce the industry's environmental impact.

The White House Office of Science and Technology Policy report focuses on the cryptocurrency mining industry, which has grown significantly in the US over the past two years.

U.S. President Joe Biden's executive order on cryptocurrencies in March led to a report proposing standards focused on clean energy use, low water consumption, and low energy intensity.

The report recommends a complete ban on such protocols that damage the environment.

The report also provides a list of recommendations designed to ensure the development of digital assets.

According to the report, the goal of these recommendations is to close data gaps, manage electricity demand, reduce greenhouse gas emissions, reduce e-waste and environmental pollution. And also to support the transition to clean energy.

Cryptocurrencies need better regulation

In addition to the White House report, U.S. regulators issued a statement on Thursday about their intentions to dominate the cryptocurrency sector and bring some law and order to the nascent asset class.

Speaking at an industry conference, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said he supports the idea of Congress giving more power to the Commodity Futures Trading Commission (CFTC) to regulate cryptocurrencies.

Allowing the CFTC to manage the BTC and ETH markets will allow the SEC to focus on regulating the rest of the crypto market, as the agency believes that all other cryptocurrencies are securities and should be governed by existing securities laws.

Powell calls for stablecoin regulation

Federal Reserve Chairman Jerome Powell discussed stablecoin legislation during a live speech.

These statements by Powell echo similar comments from regulators around the world, including the IMF, which emphasize the importance of creating a solid legal framework regarding the use of stablecoins.