Report advising White House calls for regulation
Financial Stability Oversight Council • November 08, 2022
The Financial Stability Oversight Council released its 124-page report (pdf) on digital assets. According to this new assessment produced by government regulators and advisors, digital assets pose a possible risk to the stability of the United States financial system if their scale or linkages with the traditional financial system develop without "appropriate regulation’’.
"Given that the majority of crypto tokens are securities, it follows that many crypto intermediaries are transacting in securities and must register with the Securities and Exchange Commission (SEC) in some capacity," stated SEC Chair Gary Gensler in response to the research.
These comments follow the agency's increased attempts to regulate digital assets. Last month, a decentralized autonomous organization Ooki was sued by the SEC, following earlier lawsuits of LBRY, Facebook's Libra, Ripple Labs, and the crackdown on crypto-influencers and even celebrities.
"Digital assets have grown significantly in scale and scope over recent years,” said Secretary of the Treasury Janet Yellen in a statement regarding the report. “They have attracted a large amount of capital and interest from both retail and institutional investors.
“At the same time, we have seen very significant shocks and volatility within the crypto-assets system, particularly over the last year,” she continued. “With the potential for this kind of instability in mind, at our February meeting, the Council named digital assets as one of its key priorities for the year."