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Washington Post: Biden administration seeks to impose restrictions on digital currencies

The Washington Post reported that the Biden administration is targeting the burgeoning cryptocurrency industry, noting that it will try to impose federal control over digital assets.

When Federal Reserve Chairman Jeremo Powell said last week that he was not seeking a ban on cryptocurrencies, investors were relieved, and the price of Bitcoin, the largest among cryptocurrencies, rose more than 10% to its highest level in nearly two weeks.

But behind the scenes, there are growing concerns that, after allowing the sector to grow from a shadowy venture into an industry worth more than $2 trillion in nearly 10 years, regulators in Washington are now preparing to impose a series of rules aimed at shackled cryptocurrencies.

In recent days, regulators have warned the industry, and on the same day, Powell indicated that he wants to impose federal standards on stablecoins, a type of digital asset that has grown exponentially in recent months, and usually maintains a stable price by pegging itself. in a national currency.

His comments came as details began to leak out about a major report by the Biden administration, which is expected to recommend to regulators the development of bank-like rules for stablecoins.

Just last week, the head of the Securities and Exchange Commission, Gary Gensler, likened stablecoins to casino poker chips, telling the Washington Post that he didn't think cryptocurrency had the long-term viability. Acting Currency Controller Michael Hsu said the crypto craze is like a foolish gold rush similar to what preceded the 2008 scientific financial crisis.