Biden administration contemplates regulating cryptocurrencies by qualifying them as a matter of national security

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Biden administration contemplates regulating cryptocurrencies by qualifying them as a matter of national security For Angel Di Matteo @shadowargel

Sources claim that the White House plans to issue an executive order for a group of government and regulatory agencies to begin work on a comprehensive regulation applicable to Bitcoin and to the main cryptocurrencies.

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Recently published reports indicate that the administration of President Joe Biden plans to publish an executive order directed at the main US federal agencies to work on the regulation of digital assets such as Bitcoin, to which he will apparently assign national security priority.

The US government will launch an executive order to regulate cryptocurrencies

This was revealed in an article recently published by the news agency Bloomberg, where sources familiar with the case indicated that this new executive order would be part of a large-scale strategy about which more will be known in the coming weeks, so that federal agencies will be in charge of evaluating risks and opportunities posed by cryptocurrencies for the US government

According to the sources, senior officials have already been in several meetings to discuss this plan, so an executive order is being drafted where all the details associated with this operation will be specified. This would place the White House in the most important position at the regulatory level among the attempts seen so far to regulate cryptocurrencies at the local level.

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National Security Issue

However, the most remarkable aspect is that the category under which this executive order would fall is under that of “National security”, which would give priority to the issue among the large number of issues currently being discussed at the state level.

In this regard, one of the sources commented the following:

“This is designed to take a comprehensive look at digital assets and develop a set of policies that give coherence to what the government is trying to do in this space. Because digital assets do not stay in one country, it is necessary to work with other countries on synchronization [de esfuerzos]”.

multi-agency coalition

Regarding the approach of these regulatory efforts, it seems that the Department of State, the Department of the Treasury, the National Economic Council, and the Council of Economic Advisers, as well as to White House National Security Council. The premise behind this alliance is that cryptocurrencies could pose economic risks to national security.

In this regard, the source indicated that the idea is to correct the messy and disjointed approach with which cryptocurrencies have been currently approached. In this sense, on the one hand there is the Securities and Exchange Commission (SEC) and on the other the Commodity Futures Trading Commission (CFTC), which still cannot reach a consensus on whether certain digital currencies could fall within the securities laws or not.

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a difficult moment

The intentions on the part of the Biden administration come at a particularly difficult time for cryptocurrencies, since for a few weeks the market has been going down amid a series of announcements, mainly related to the economic situation in the US and the measures taken by the Federal Reserve (Fed) to deal with inflation affecting the US currency.

Beyond the measures adopted by the Fed, On the international scene, one of the problems that the crypto sector is beginning to face has to do with advertising campaigns, since certain countries are beginning to close spaces for companies in the sector to reach a large number of people with their products and services.

For now, the Cwhite handlea has not commented on these reports, but more information is expected in the coming weeks.


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Fountain: BitcoinMagazine, Bloomberg, Twitter

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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