Big mistakeJoe Biden reveals game-changing crypto roadmap after $2 trillion worth of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana.

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BitcoinBTC, ethereum and other cryptocurrencies suffered a “rough year” in 2022, Biden administration officials say, promoting a devastating blow from the Federal Reserve.

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The price of bitcoin has fallen from nearly $70,000 per bitcoin at the end of 2021 to around $23,000 today, helping to wipe $2 trillion from the combined crypto market. Bitcoin has surged so far in 2023, adding 40% (topping Goldman Sach’s asset rankings in 2023) and boosting the price of other major coins ethereum, BNBBNB, XRPXRP, cardano, dogecoin, polygon, and solana.

Now the Biden administration has said Congress needs to “step up its efforts” to regulate the bitcoin and crypto market, warning it would be a “big mistake” to allow ties between cryptocurrencies and the financial system. broadly to deepen amid warnings of a “global financial meltdown.”

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US President Joe Biden signed an executive order on cryptocurrency last year amid massive bitcoin,… [+] ethereum, BNB, XRP, solana, cardano, dogecoin and polygon price boom.

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“Over the past year, the limited exposure of traditional financial institutions to cryptocurrencies has prevented the cryptocurrency turmoil from infecting the broader financial system,” wrote four senior US officials. Biden administration in a statement, urging Congress to “step up” its efforts to regulate the cryptocurrency market after the introduction of a number of crypto bills.

“It would be a grave mistake to enact legislation that reverses course and deepens the ties between cryptocurrencies and the wider financial system.”

Over the past year, some of the biggest giants on Wall Street have started to make inroads into the world of bitcoin and crypto.

Blackrock, the world’s largest asset manager, has teamed up with bitcoin and crypto exchange Coinbase while Goldman Sachs, JPMorgan, Wells FargoWFC have been named to a list of FTX creditors after the shock collapse of the exchange.

Fidelity, one of the world’s largest financial institutions, has drawn criticism from regulators and lawmakers for its 401k plan that allows bitcoin allocations.

“Legislation should not give traditional institutions, like pension funds, the green light to plunge headlong into cryptocurrency markets,” said White House advisers Brian Deese, director of the National Economic Council. , Arati Prabhakar, Director of the White House Office of Science and Technology Policy, Cecilia Rouse. , Chairman of the Council of Economic Advisers and National Security Advisor Jake Sullivan wrote.

Congress should consider expanding the powers of regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), strengthening transparency and disclosure requirements for crypto companies, increasing funding for law enforcement and pass so-called stablecoin legislation, they advised, following President Joe Biden’s executive order on crypto in March last year and the White House’s “comprehensive” framework for developing crypto in September.

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MORE FROM FORBESGoldman Sachs Finds Bitcoin Leads Gold, S&P 500 and Nasdaq as Best Performing Asset of 2023By Billy Bambrough

The price of bitcoin has seen wild swings over the past few years, reaching breakneck speed before… [+] plummeting, with other major coins ethereum, BNB, XRP, solana, cardano, dogecoin and polygon experiencing similar volatility.

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The statement was widely welcomed by the crypto industry which is still reeling from the collapse of FTX and its fallout.

“This is the first media statement from the White House on the subject since the events of late 2022,” Sheila Warren, chief executive of advocacy group Crypto Council for Innovation, said in an emailed statement.

“It is rooted in the public policy goals we expect of the executive branch in the wake of such events: to hold bad actors accountable, to protect investors, and to ensure financial stability. It also recognizes that human behavior leading to recent failures is not new or unique to crypto.”

However, Warren cautioned against blunt or hasty legislation.

“It’s important to have careful, evidence-based conversations and to get the law right. We support the administrations call on Congress to establish appropriate safeguards and transparency for those who participate in the digital asset space. “, she said.

However, Binance CEO Changpeng “CZ” Zhao warned via Twitter that the $2 trillion bitcoin and crypto price crash last year would discourage “traditional financial players.” [adoption] of [bitcoin, crypto and blockchain] technology” and “will likely cause them to be further behind on the adoption curve, which may have existential implications for them.”

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