A bout of volatility in the past month in the crypto market has helped to reignite a push for increased scrutiny of the nascent digital-asset sector by lawmakers, the Washington Post reported on Tuesday.
The paper reported that administration officials in President Joe Biden’s office are “discussing whether guardrails on cryptocurrency can be imposed while still allowing investors to ‘dogecoin to their heart’s content,’” citing people briefed on discussions.
The report comes as cryptographic assets, led by bitcoin
have experienced a particularly volatile stretch of trade, even by bitcoin standards, as digital assets have garnered increased attention by retail and institutional investors alike.
Bitcoin prices are changing hands at $37,892.77 on CoinDesk, up nearly 30% in the year to date but, down more than 40% since a mid-April peak.
Meme asset dogecoin
which was created in 2013 as a lighthearted riff off growing alternatives to bitcoin (it was forked from litecoin
which was in turn a fork of bitcoin) is up over 7,000% thus far in 2021. However, the asset that has a large social-media community supporting it is at 34.3 cents, down by more than 50% from its peak earlier this month.
Discussions around Washington lawmaker’s approach to regulating digital assets also come as the Biden administration is looking for ways to grow tax revenues. Notably, regulators were looking at ways to address extortion, tax evasion and investor protections.
“The Chamber and our members have said for years that the industry needs increased regulatory clarity. Blockchain and digital currencies offer enormous opportunities to increase financial inclusion, drive technology innovation and lead clean energy initiatives,” Perianne Boring, the founder and president of the Chamber of Digital Commerce, a D.C.-based trade association for the blockchain industry, told MarketWatch.
Read: Bitcoin extortion: How cryptocurrency has enabled a massive surge in ransomware attacks
Last Thursday, the U.S. Treasury Department emphasized that “as with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported on”, in a report outlining potential new tax compliance measures.
The Post reported that officials are studying regulatory gaps in overseeing the crypto market, which didn’t exist before 2009.
Securities and Exchange Commission Chairman Gary Gensler has directed staff at the agency to prepare for potential new rule-making and enforcement actions related to areas of the market that he perceived as harboring risk, including crypto markets. Gensler called cryptocurrency rules a priority in his confirmation hearing back in April.
Gensler, a former Goldman Sachs
partner and former chairman of the Commodity…