The United States is preparing for a cryptocurrency edict
The United States is preparing for a cryptocurrency edict.
President Joe Biden’s White House is expected to issue an executive order on US government actions related to digital assets in the coming weeks.
A source “familiar with the White House plans” said the order would be issued in a national security memo.
Biden’s memo will designate a number of government agencies to investigate cryptocurrencies, stablecoins and non-fungible tokens with the goal of developing a workable regulatory framework.
The source said:
“They will look at digital assets as a whole and develop a set of policies that are consistent with what the government is trying to do in this area.”
Recently, rumors about the possible decree of the world’s greatest power on cryptocurrencies have been circulating in the newspapers. Earlier in the week, Forbes reported that government agencies are expected to release a report looking at the “systemic risks of cryptocurrencies and illicit use” in mid-2022.
The reason why this decree is classified as a national security issue is because cryptocurrencies are viewed as a means of transferring funds across borders. The ability of decentralized blockchain technology to circumvent geographic surveillance rules or standards will prompt governments to implement international regulations in sync with other countries.
Eric Balchunas, Bloomberg’s senior exchange-traded fund (ETF) analyst, noted today that the Biden administration’s view of cryptocurrencies as a national security threat may also be to blame for its consistent disapproval of spot bitcoin ETFs.
He also called the new developments “a broader crackdown on crypto” in a Jan. 28 tweet.
xpansion of repression
Another piece of legislation worrying the crypto industry was proposed by House Democrats on Jan. 25: the US Competition Act. Jerry Brito, executive director of the think tank Coin Center, is based in Washington DC notice about a provision in the proposed bill that would allow the Treasury Secretary to ban exchanges from operating without notice.
Brito believes the law is likely to be passed “in some form”.
Meanwhile, a group of lawmakers are trying to “sharpen” the rough edges of passed legislation. After receiving a call from crypto industry experts, a bipartisan House of Representatives group has asked Biden-nominee Treasury Secretary Janet Yellen to clarify aspects of the Financial Infrastructure Act related to digital financial products. The infrastructure law was signed last November amid controversy over the definition of “broker,” which was deemed too broad to include miners, software developers, transaction validators and node operators.
On Jan. 26, a bipartisan group of lawmakers proposed limiting the range of information brokers can obtain to avoid “creating an uneven playing field in transactions involving technical asset numbers and who must provide them.” Some brokers, as currently defined in the bill, are unable to verify information about crypto senders and receivers as required by law. So far, Yellen has not responded to this request.
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