White House Takes Aim At Crypto In New Released Economic Report

March 26, 2023 10:35 am Comments

The Biden administration just released a new report that reveals their take on digital currencies and it looks like the report is only highlighting negative aspects of the crypto industry.

The release of the report is also quite interesting as it comes during a time where many of the flaws of traditional banking and finance are being exposed.

As a result, people may wonder which of the two systems is actually better based on factual evidence rather than what the White House report says.

Regardless, the released economic report talks about the issues that digital assets create for consumers, the financial system, and the environment overall.

CoinDesk shares more details:

The “Economic Report of the President,” published on Monday, is an annual publication by the Council of Economic Advisers aimed at explaining the president’s economic priorities and policies.

The March 2023 issue included an entire chapter on digital assets and “economic principles.”

Monday’s report comes amid growing industry concern that federal regulators are looking to de-bank crypto companies, though state and federal regulators have thus far denied these claims. Still, the tone of the report is unlikely to assuage these concerns.

Matthew Homer, a former deputy superintendent with the New York Department of Financial Services, told CoinDesk the report was a “damning indictment of the space that makes [the administration’s] policy position crystal clear.”

The report continually tries to highlight the claim that crypto assets do not have a fundamental value and that digital assets do not improve payment systems or provide a more inclusive financial environment.

Of course, all the statements from the report can directly contradict the data that is available which shows that crypto does indeed do all the things that the economic report claims that it doesn’t.

Additionally, the claim that digital assets do not have value is a broad claim that can also be applied even to fiat currency given that there is risk of storing it in a bank and that it suffers from inflation.

As expected, the report also goes into details about the FTX collapse as well as the collapse of Terra which happened last year.

It uses these specific examples to paint a broad picture that the entire industry is negative, but does not talk about how these incidents were the result of the failure of government regulators and not having clear regulations for the industry.

The industry, as a whole, has provided much more pros than cons which can be shown by the ever-increasing institutional demand.

CoinDesk concludes:

The report also took a minute to say a centralized internet is easier, citing Signal creator Moxie Marlinspike.
It mentioned that forthcoming systems like the real-time payment FedNow network “could bring significant benefits to vulnerable segments of the populations.”

Despite listing out these concerns, the report did not delve deeply into recommendations for future regulations or congressional actions that could address the stated risks.

The section’s conclusion acknowledged that the underlying distributed ledger technology “may still find productive uses in the future” for both government entities and private companies.

The report also acknowledged that “some crypto assets appear to be here to stay,” although it went on to note that “they continue to cause risks for financial markets, investors and consumers.”

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