Crypto rules are needed for national security. According to a person familiar with the White House’s plans. The Biden administration is ready to unveil an executive action. That will charge federal agencies with regulating digital assets. Such as Bitcoin and other cryptocurrencies as a matter of national security.
According to this source, the national security memorandum. Which is expected to be released in the next few weeks. This would assign various departments within the government. The task of analyzing digital assets and putting together a regulatory framework. That would cover cryptos, stablecoins, and NFTs, or non-fungible tokens.
“This is intended to take a comprehensive approach to digital assets. And produce a set of regulations that will bring coherence. To the work that the government is undertaking in this area,” the source explained.
A number of government agencies. Including the United States State Department and Treasury Department. As well as the National Economic Council and the Council of Economic Advisers. This would be involved in the program.
The National Security Council of the White House would also be involved, according to the source. Because cryptography has economic ramifications for national security. Taking a similar approach, the administration would direct agencies. To focus on harmonizing legislation for digital assets across countries.
According to the source, “since digital assets do not remain in a single country. It is vital to collaborate with other countries on synchronization.”
The White House said it would not also make any recommendations. Agencies would given three to six months to develop ideas. With the White House serving as a policy coordinator throughout the process.
The White House wants to put an end to the chaos to crypto rules
According to the source, the White House is attempting to bring structure. To the government’s haphazard approach to cryptocurrency regulation at the moment. Multiple regulatory authorities, including the Securities and Exchange Commission. And the Commodity Futures Trading Commission, keep an eye on the industry. The cryptocurrency community, on the other hand. Is divide on issues such as whether some tokens should classified as securities. And how to regulate exchanges, stablecoins, and high-yield loan products.
In recent months, Congress has also held a number of hearings on cryptocurrency. Revealing partisan differences between Republicans and Democrats on how to regulate the business.
In addition, the Biden administration is pressing Congress to write regulations. In November, the White House produced a report on stablecoins. Where it also recommended that Congress move quickly. To also regulate the emerging business of digital assets.
Aside from that, the Federal Reserve has spoken out on digital currencies as well. On January 11, the Federal Reserve presented a paper on a central-bank digital currency. Also known as a CBDC. In which it outlined the advantages and disadvantages of digitizing the dollar. According to the article, the Federal Reserve could begin working on the initiative. If the White House and Congress provide support. According to a Treasury Department spokeswoman. The study is also a crucial step forward in discussions about establishing a CBDC.
Moreover, Other governments are tightening their grip on cryptocurrency. Seeing it as a threat to their national economic security. The Russian central bank and finance ministry stated this week. That Bitcoin mining and trading activities should more strictly regulated. Than they are currently. In a statement issued Wednesday. Russian President Vladimir Putin also called on authorities. To reach a consensus on the issue of regulating space.