The Council of Economic Advisers’ annual economic report to Congress has concluded that digital assets do not meet the stated use cases and pose risks to investors and financial stability in general.
This has come a year after President Joe Biden issued an executive order to coordinate federal agencies in regulating cryptocurrencies.
The report has acknowledged that cryptocurrencies have been presented as a tool for spreading intellectual property and financial value, a better payment mechanism, a means of expanding access to financial services, and a way to eliminate financial intermediaries, but noted that they have yet to deliver any of these benefits.
Furthermore, it has raised questions about the role of regulation in protecting consumers, investors, and the rest of the financial system from digital asset panics, crashes, and scams.
