Biden Reportedly Plans To Regulate Crypto In Executive Order Due To ‘National Security’
President Biden is anticipated to release an executive order requiring federal agencies to begin undertaking risk assessments on cryptocurrencies as a potential national security concern.
In the following weeks, President Joe Biden’s administration is expected to publish an executive order outlining the activities the United States government should take in relation to digital assets.
According to a source “familiar with the White House’s plan,” the executive order would be published in the form of a national security memorandum, according to Barron’s. Biden’s memorandum would assign some government institutions the task of researching cryptocurrency, stablecoins, and nonfungible tokens with the objective of building a suitable regulatory framework for the digital asset market.
The source said: “This is designed to look holistically at digital assets and develop a set of policies that give coherency to what the government is trying to do in this space.”
Forbes reported earlier this week that those government bodies will likely submit reports on their conclusions by the middle of 2022, after having looked into “the systemic risks of cryptocurrencies and their illicit uses.”
According to Eric Balchunas, a senior exchange-traded fund (ETF) analyst at Bloomberg, the Biden administration’s perception of cryptocurrency as a national security danger may also be a factor in the administration’s refusal to approve Bitcoin (BTC) spot ETFs on a consistent basis.
In a tweet sent out on Friday, he also alluded to the recent developments as part of a “broader crypto crackdown.”
The America COMPETES Act was proposed by House Democrats on Tuesday and one provision in the proposed bill could enable the Treasury Secretary to ban cryptocurrency exchanges from operating without any notice.
2/ The so-called "special measures" provision (proposed by @jahimes) would essentially give the Treasury Secretary unchecked and unilateral power to ban exchanges and other financial institutions from engaging in cryptocurrency transactions. How would it do this? pic.twitter.com/f3tVow9nxA
— Jerry Brito (@jerrybrito) January 26, 2022
Stay tuned to The Scoop for any crypto related updates.
