U.S. Administration Considers Crypto Regulation As A Matter of National Security

According to an article published on January 27 by the American newspaper Barron’s, an executive action, which will influence crypto regulation, is being prepared to release by the U.S. government.

This executive action is expected to “task federal agencies with regulating digital assets such as Bitcoin and other cryptocurrencies as a matter of national security.”

It stated that the national security memorandum, which is expected to be released in the next few weeks, would assign portions of the government the task of analyzing digital assets and putting together a regulatory framework that would cover cryptocurrencies, stablecoins, and non-fungible tokens (NFTs)

“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,” the man who revealed the news said.

The State Department, Treasury Department, National Economic Council, White House National Security Council, and Council of Economic Advisers would be involved in the initiative. The administration would instruct agencies to work on harmonizing regulations of digital assets between countries.

“Because digital assets don’t stay in one country, it’s necessary to work with other countries on synchronization,” the person said.

The White House wouldn’t give recommendations. Agencies would be given three to six months to come up with proposals, and the White House would act as a policy coordinator.

The Biden administration is also urging Congress to draft rules. The White House released a report on stablecoins in November, recommending that Congress act promptly to regulate the crypto industry.

The Federal Reserve has also weighed in on digital currencies. The Fed released a report on a central-bank digital currency, or CBDC, earlier in January that laid out the pros and cons of digitizing the dollar. The report said that the Fed could start work on the project with support from the White House and Congress. A Treasury Department spokesman called the report an important step forward in discussions about a CBDC.

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