The White House of U.S. President Joe Biden released a statement about the implementation of cryptocurrency security measures.
In a statement, the White House discussed the dangers of cryptocurrencies and mentioned the numerous failures that occurred last year. I discussed the remark and its implications with a representative of the administration.
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‘A tough year’
The narrative
The National Economic Council's (outgoing) Director Brian Deese, the White House Office of Science and Technology Policy's Director Arati Prabhakar, Council of Economic Advisors Chair Cecilia Rouse, and National Security Advisor Jake Sullivan all signed a "roadmap to mitigate cryptocurrencies' risks" that was released by the White House last week.
Why it matters
The comment doesn't seem to come as a big surprise at first. The year 2022 was indeed difficult for the bitcoin business. Our court database costs have increased significantly as a result of having to keep up with the numerous businesses that have filed for bankruptcy, as I explained in a previous issue of this newsletter. However, compared to U.S. President Joe Biden's executive order on cryptocurrencies from last March, the remark sort of suggests a more circumspect approach to cryptocurrencies.
Breaking it down
The opening paragraph of the statement provided a brief overview of "a rough year" for cryptocurrency, including the failure of Luna and FTX but noting that there did not seem to be any spillover effects from the crypto business to the larger financial environment.
The statement is a component of Team Biden's ongoing attempts to fix regulatory loopholes inside the cryptocurrency ecosystem, according to a senior administration official with whom I spoke about it.
The individual added, describing the move ahead on the administrative front, "we're continuing to push forward, implementing a lot of the [executive order] recommendations and pushing regulators... to continue their efforts to ratchet up enforcement and crackdown on illegal practises in the industry."
Upcoming hearings
It's going to be a hectic week. There will be four bankruptcy hearings, as well as one on Celsius' offer and Sam Bankman-bond Fried's requirements. What we're viewing is listed below.
Monday 9:30 a.m. ET: FTX Bankruptcy Hearing - Examiner Appointment
11:00 a.m. ET): Genesis Bankruptcy Hearing at 16:00 UTC
2:00 p.m. ET: Celsius Bankruptcy Hearing, 19:00 UTC.
Wednesday
10 p.m. ET/15:00 UTC: Celsius Bidding Date
Thursday at 1:00 p.m. ET (18:00 UTC): FTX Bankruptcy Hearing
Bail hearing for Sam Bankman-Fried at 10:30 a.m. Eastern Time.
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