• The White House will soon present an executive directive instructing different federal agencies to coordinate development of a cryptographic regulatory frame proposal.
• Biden’s administration hopes to put an end to cryptocurrency issues, because it was dealt with in a chaotic manner by the government.

The federal government plans to issue an executive action to regulate and other digital assets as a matter of national security, the specialized medium Barron’s, revealed citing a source familiar with the Biden administration’s plan.

The extraordinary tax source that cryptocurrencies provide for the government has been a focus of President Joe Biden since the start of his presidency.

The source claims that the Administration will shortly issue a National Security Memorandum, which is intended to give federal agencies the task of creating a regulatory framework for the whole industry. This includes cryptos, stablecoins and non-fungible tokens (NFTs).

Designing a consistent regulatory policy

This initiative will also be coordinated by Treasury Department and State Department with participation of National Economic Council (CEA) and Council of Economic Advisors. Due to the potential economic consequences that cryptocurrency have on national security, the White House’s National Security Council will be involved.

“This is designed to take a holistic look at digital assets and develop a set of policies that give coherence to what the government is trying to do in this space,” the source said.
It explained that the work of governments agencies should be coordinated with those of allied nations who are working to regularize crypto assets.

“Because digital assets don’t stay in one country, it’s necessary to work with other countries on synchronization.”
With the White House as policy coordinator, it would take three to six months for crypto rule proposals to be submitted. However, White House officials declined to comment.

It is also interested in regulatory issues. The Congress convened many hearings, with SEC officials and chief executives of crypto exchanges, to discuss the regulatory issue in the final months of 2017.

According to a source, the Biden administration views the crypto issue as a mess and is determined to make it better. Securities and Exchange Commission and Commodity Futures Trading Commission oversee the cryptocurrency industry.

Flipside

• The Congress has not reached a consensus between Republicans and Democrats on how to regulate cryptocurrencies. However, the Biden administration is not able to reach a consensus on key aspects of cryptocurrency regulation.
• The disagreements range from how tokens should be treated as securities, to the best way to monitor exchanges, high-yield lending products, and stablecoins.

What You Need to Care About

• The government asked Congress in November to speed up the discussion on the establishment of crypto asset regulations, as a result of the publication a report about stablecoins.

The other body that has been very interested in the regulatory issue of cryptocurrencies and the issuance of a central bank currency (Digital Dollar – CBDC) has been the Federal Reserve.

However, it’s believed this project with digital dollars will take a while to materialize. This despite the fact that China, Russia and other countries have made significant progress in this area.

EMAIL NEWSLETTER

Get the other side of crypto!

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7]
It takes just 1 click to unsubscribe.

Continue reading on DailyCoin