Reserve

United

<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/bridging-the-crypto-oversight-gap-us-accountability-office-calls-for-federal-regulators/">Bridging the Crypto Oversight Gap: US Accountability Office Calls for Federal Regulators</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The United States Government Accountability Office (GAO) released a report, commissioned by Rep. Maxine Waters (D-Calif.) and Rep. Stephen Lynch (D-Mass.) of the Financial Services Committee, highlighting a regulatory gap concerning crypto assets. The report suggests a unified, comprehensive approach involving federal regulators to address this issue.</p> 
<p>According to the <a href="https://t.co/1vyIgZVaYi" rel="noopener noreferrer nofollow">report</a>, there is currently no federal financial regulator with the authority to oversee the spot market for crypto assets that are not considered securities. To address this, the GAO recommends establishing a formal coordination mechanism, which could help federal financial regulators collectively identify risks associated with blockchain-related assets and develop appropriate responses in a timely manner.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
   <p lang="en" dir="ltr">Blockchain technology—like <a href="https://twitter.com/hashtag/cryptocurrency?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#cryptocurrency</a>—could offer faster, cheaper financial transactions. But recent price crashes &amp; bankruptcies have raised concerns about gaps in federal regulations that could put consumers at risk. Our new report &amp; video explore: <a href="https://t.co/1vyIgZVaYi" rel="noopener noreferrer nofollow">https://t.co/1vyIgZVaYi</a> <a href="https://t.co/nxHrk1g5dQ" rel="noopener noreferrer nofollow">pic.twitter.com/nxHrk1g5dQ</a></p>— U.S. GAO (@USGAO) <a href="https://twitter.com/USGAO/status/1683522581532491776?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 24, 2023</a> 
  </blockquote> 
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div> 
</figure> 
<p>In response to the regulatory gap, the Treasury’s Financial Stability Oversight Council has been assigned the responsibility of leading the development of a unified approach to overseeing crypto assets, based on a March 2022 Executive Order.</p> 
<h2 class="wp-block-heading" id="h-the-report-talks-about-stablecoin-concerns">The report talks about stablecoin concerns</h2> 
<p>The report expresses particular concern about the regulatory authority over stablecoins, highlighting the fragmented nature of the U.S. financial regulatory structure. This fragmentation mainly relates to standards concerning reserve levels and the public disclosure of reserves. To address this issue, the report calls for regular audits and public disclosures of reserve assets and audit results, along with the establishment of a legal framework regarding redemption rights.</p> 
<p>To effectively address these challenges, the report suggests that major U.S. financial regulators, including the Consumer Financial Protection Bureau (CFPB), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve System, the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC), should establish or adapt an existing formal coordination mechanism. This collaborative approach would enable the timely identification and response to risks associated with blockchain-related products and services.</p>

Bridging the Crypto Oversight Gap: US Accountability Office Calls for Federal Regulators

Table of Contents

CoinPedia News

Other articles published on Jul 25, 2023

Nevada woman prisoned for murder attempt through dark web

Worldcoin (WLD) Price Dips Nearly 40% Amid Skepticism With Tokenomics and Ecosystem’s Security

Milestone Achieved: Bitcoin Network Mines 800,000th Block

UK’s Data Watchdog to Examine Worldcoin as Project Picks Up Steam

Seoul Govt to Hire Blockchain Expert to Enhance Administrative Services for Citizens

US financial institutions’ trade associations object to Stablecoin Regulatory Framework in the Ho...

Join our free newsletter for daily crypto updates!