As a matter of national security, President Joe Biden's government intends to charge multiple federal agencies with regulating crypto assets. The executive order is expected to be issued in the coming weeks.
Biden to Task Agencies with Proposing Crypto Regulations According to the Biden administration, cryptocurrency regulation is a critical component of national security. The White House, according to a Barron's source, would direct government agencies to do evaluations on digital assets such as cryptocurrencies, stablecoins, and non-fungible tokens in order to develop a regulatory framework. The administration's goal, according to the source, is to ‘create a set of policies that offer coherency to what the government is trying to achieve in this domain’ by taking a holistic look at crypto-assets. The White House, on the other hand, has no plans to release its own recommendations, preferring to have federal agencies submit their own proposals, which the White House would then synthesis and bring together. The administration's aim for ‘harmonization’ of regulations, particularly globally and between nations, was stressed by a Barron's source, who noted that ‘digital assets don't stay in one country.’ The State Department, Treasury Department, Council of Economic Advisers, National Economic Council, and the White House National Security Council are all expected to be participating. The Biden administration wants to address the current lack of consensus on a variety of problems (for example, what constitutes security). The administration's focus, according to Bloomberg last week, isn't on concerns like digital currency being used for illegal activities or the economy, but rather on the systemic implications crypto-assets may have. In fact, the White House appears to be keen on allowing the United States to be at the forefront of space research. Regulators in the United States have recently been engaged with the topic of digital assets. Last month, Congress had lively hearings on stablecoin regulation, and just last week, hearings on the environmental impact of cryptocurrencies. Meanwhile, on January 20, the Federal Reserve released its long-awaited central bank digital currency report. Other countries, on the other hand, are taking a different approach, with the Bank of Russia considering a crypto ban and senior EU authorities advocating for a proof-of-work mining ban.