The White House, in a scathing report on cryptocurrencies, has said crypto-assets do not have any "fundamental value", nor do they act as an "effective alternative to fiat money" or "make payments more efficient".

The Economic Report of the President, which was published on March 22, 2023, a publication of the Council of Economic Advisers, outlines the US government's economic priorities and policies.

With this report, it has become clear that regulators in the US could take a stronger stance against crypto companies even though they have avoided taking such a position so far. The Indian government has also taken a similar approach towards the crypto industry due to various issues associated with the technology.

The Centre is yet to come up with comprehensive legislation on cryptocurrencies, though it has taken steps to curb its misuse for illegal activities.

The White House report says crypto innovation has been mostly about creating artificial scarcity to support its assets’ prices — and many of them have no fundamental value.

"This raises the question of the role of regulation in protecting consumers, investors, and the rest of the financial system from panics, crashes, and fraud related to crypto assets. Even so, as companies and governments experiment with DLT, it is conceivable that some of their potential benefits may be realised in the future," it adds.

On the perceived appeal of crypto assets, it says crypto assets have gained substantial popularity in recent years — particularly since the beginning of the COVID-19 pandemic in 2020.

"The estimated market values of selected crypto assets have increased significantly in recent years and reached a collective peak of nearly $3 trillion in November 2021."

Economic Report of the President

Crypto not an alternative to 'fiat money'; no ‘fundamental value’: White House