The Bitcoin price has managed to reach the $67K level for the first time in the last 5 months. Many Bitcoin maximalists and cryptocurrency enthusiasts are certain that the flagship cryptocurrency will be able to hit the highly anticipated six-figure valuation before the end of the current year. However, many critics think that the cryptocurrency market comes with a huge risk factor.
Even though commercial, financial institutions have started to take a greater interest in the digital assets industry, most of these organizations are only allowing clients with high-risk tolerance into this realm. Many traders believe that the uncertainty of government regulations in this field of investment is the biggest red flag. White House official Peter Harell recently broke silence on this matter.
Crypto Industry Needs Regulations
Peter Harrell is the senior director for international economics and works in coordination with the National Security Council. He recently addressed the media on the matter of the cryptocurrency explosion in the country. Harrell claimed that the state administration is concerned with the high-risk factors that are posed by crypto trading.
He further explained that the process of legal scrutiny for digital asset markets is only starting. He claimed that the Biden administration has decided to address the issue as a top priority about the nature of increasing cryptocurrency popularity in the USA. He also claimed that the administration is also looking to secure the position of the country as a world leader in blockchain technology.
Gary Gensler, the chief of Securities and Exchange Commission under the Biden administration, has started to open up about his stance on the matter. He has told media while addressing congress that there are many cryptocurrency variants and tokens that resemble the structure of private money. He claims that SEC prosecutors are working to bring about hundreds of lawsuits on such projects.
Speaking to the journalist at WSJ, Harrell claimed that government regulators are working on understanding and controlling the flow of stablecoins. He claimed that these stablecoins projects that are backed by Treasury could pose a threat if a great number of investors decided to cash out in a short period. Harrell added in the end that the government is also considering the advantages of blockchain technology as well.
