The cryptocurrency industry, rather than democratizing financial services as its promoters have promised, so far has produced a minefield of frauds and thefts that federal regulators should redouble their efforts to police, the Treasury Department said in a new report, the Washington Post reproted. The department is urging financial watchdogs to make use of the authorities they already have, instead of waiting for Congress to clarify which agency will take the lead in developing rules for the sector. And it is pushing regulators and law enforcement officials to team up on tougher investigations into potential illegal activity in crypto markets. The report — focused on crypto’s impact on consumers, investors and businesses — is one of a series of studies Treasury and other agencies released Friday in response to a sweeping review of the federal government’s approach to digital assets that President Biden ordered in March. The others focus on the threats crypto poses to combating illicit finance and what the technology could mean for streamlining payment systems, including through the launch of a U.S. digital dollar.
