The White House, in the Economic Report of the President, recently issued a 36-page chapter on the digital asset market.
In it, digital assets are criticized as “primarily speculative investment vehicles,” and the report calls them “a bubble waiting to burst.” This would imply that the value of crypto is overstated and that its apparent attractiveness is based on the illusion of scarcity.
The report also raises concerns about the efficacy of regulation in preventing digital asset-related panics, collapses, and fraud, which threaten not only individual investors but the entire financial system. According to the report, more controls are needed, with experts worried.
FedNow, a digital payment network, and central bank digital currencies (CBDCs) are mentioned briefly but positively in the report. The news has stoked concerns about the crypto industry’s future and its interactions with regulators.
Crypto Execs Annoyed by White House’s Digital Asset Criticism
Business leaders in the cryptocurrency industry are voicing their displeasure with the President’s Economic Report, which includes a chapter that questions the worth of cryptocurrencies. Since its inception in 1950, this is the very first annual economic policy report to mention digital assets.
Kristin Smith, CEO of the Blockchain Association, has spoken out against the report, saying that it shows some government officials to be unfriendly towards the rapidly growing crypto business.
The centralization problem in blockchain-based apps is also addressed in the report, with the authors stating that these programs need to be more decentralized and trustworthy. The report came out a short time after the failure of several banks catering to the cryptocurrency sector. Some analysts have even gone so far as to say the report portends the US central bank’s introduction of a dollar-backed currency.
Final Thoughts
It is safe to say that the latest White House report on the digital asset industry has raised some eyebrows among professionals in the field and corporate decision-makers.
This raises serious concerns regarding the safety and soundness of cryptocurrency investments and calls into question the necessity of increased regulatory control to forestall fraud and financial instability.
While the report does reference the advantages of central bank digital currencies and digital payment networks, it takes an overall negative stance towards the cryptocurrency sector. The industry will be keeping a close eye out for any changes or advancements that may be instituted due to the report’s findings, but at this time, it is unclear what action regulators may take in reaction to the report.
She is a freelance writer specializing in cryptocurrency news with a strong background in finance and a passion for technology. With several years of experience covering the latest trends and analysis in the rapidly evolving crypto market, she is dedicated to providing accurate and insightful coverage of the industry. Their goal is to help readers stay informed and up-to-date on the latest developments in the world of cryptocurrency.
