The Biden administration has called for increased regulation of the cryptocurrency market by the U.S. Congress.

In a statement, four senior officials warned against creating a deeper connection between crypto and traditional finance due to potential risks.

They pointed to the limited exposure of traditional financial institutions to cryptocurrencies, which prevented the broader financial system from being impacted by cryptocurrency turmoil in the past year.

The officials called for expanded powers for regulators to protect customer assets, increased transparency, and reporting requirements for crypto companies, and stablecoin legislation.

The U.S. House of Representatives recently created a subcommittee on digital assets, while the Commodity Futures Trading Commission also called for expanded authority.