Washington: Top regulators now recommended a series of new safety measures on Monday to make sure that the growing cryptocurrency market, which is not regulated, doesn't imperil the financial stability of the US.
As one of seven major suggestions, regulators asked Congress to pass a law that would deal with the systemic risks caused by the growth of stablecoins. Stablecoins are a type of cryptocurrency that is tied to the price of another financial asset, like the US dollar or gold.
Recent volatility in the cryptocurrency market, especially in stablecoins, has made regulators especially wary about the need to regulate the digital asset as its use continues to grow. Members of the Financial Stability Oversight Council met on Monday to approve the suggestions in a 125-page report that was made in response to an executive order on digital assets from President Joe Biden in March.
The report also says that agencies should have more power to regulate digital assets and cryptocurrencies. The Oversight Council is a group of different government agencies led by Janet Yellen, Secretary of the Treasury, and including Jerome Powell, Chairman of the Federal Reserve. The council was made after the 2008 financial crisis. Its job is to find risks and new threats to the financial stability of the US.
A Pew Research Centre poll from September 2021 found that about 16% of adults in the US, or 40 million people, have invested in cryptocurrencies. And 43% of men between the ages of 18 and 29 have invested in cryptocurrency.
The Treasury Department put out a report last month that said the US should work on making a digital dollar.
Top cryptocurrencies, Bitcoin prices today, October 4
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