The White House has released a scathing report on the state of cryptocurrencies, authored by the Council of Economic Advisers. The report cites a number of issues within the digital asset ecosystem, including concerns for consumers, the financial system, and the environment. The Economic Report of the President (ERP), an annual publication aimed at explaining the President's economic priorities and policies, included an entire chapter on digital assets and "economic principles."
Industry experts have expressed their concerns that federal regulators are looking to de-bank crypto companies, and the tone of the report is unlikely to assuage these concerns. The report is seen as a "damning indictment" of the space, with its policy position being made crystal clear.
Cryptocurrencies are used by people in a variety of ways, including as investments and as a form of payment, according to a report. However, the report says that many of these cryptocurrencies don't actually have any real value and there are problems with the whole sector. The report gives examples of disasters in the crypto world, like when TerraUSD, BitConnect, and FTX collapsed, and how they hurt regular people.
The report also gives examples of more subtle scams, like when Long Island Iced Tea changed its name to Long Blockchain to make its stock price go up even though it had nothing to do with blockchain. The report also mentions that a centralized internet is easier, according to the creator of Signal, Moxie Marlinspike.
In spite of the fact that the report does not explain how to address the risks listed, it does state that the technology behind distributed ledgers could continue to be useful for government agencies and private companies in the future.
It is stated in the report that although some cryptocurrencies will continue to be used, they still pose risks to financial markets, investors, and consumers. Several regulators, including the Securities and Exchange Commission, must do more to ensure that new businesses comply with the law, according to the report. The report also says that different agencies need to work together to figure out how to deal with the risks posed by different parts of the crypto asset space.
According to the report, digital assets pose a number of risks. Despite acknowledging that some aspects of the technology may have a positive impact in the future, the report recommends a greater level of regulation and oversight to resolve the issues raised. As the crypto industry continues to evolve, it remains to be seen how policymakers will address its challenges.