White House is set to present an executive order making it binding on federal agencies to regulate crypto as a matter of national security. The US government tends to see crypto as a security threat.
The regulatory memorandum will task the agencies to conduct a risk analysis on crypto. Regulators have to take into account all categories of digital assets including cryptos, stablecoins, and Non-fungible tokens (NFTs).
News of executive order was provided to Barron via a source familiar with the White House. The person said that President Joe Biden’s Memorandum will assign governmental agencies the task of developing a regulatory framework.
“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,” said the source.
The initiative will comprise The State Department, National Economic Council, Treasury Department, Council of Economic Advisers, and The White House National Security Council.
Also Read: Richest Crypto Billionaire CZ
US government intends to harmonize the regulation of crypto assets between countries. According to the source, the main concern is the movement of crypto across borders. “Because digital assets don’t stay in one country, it’s necessary to work with other countries on synchronization.”
President Biden’s administration has been working on regulating crypto since last year. In November, the White House released a report urging congress on regulating the stablecoin industry. Moreover, the federal reserve is laying out a plan for bringing about a central bank-backed digital currency or CBDC.
Governments and regulators around the globe have raised concerns over the growing popularity of cryptocurrencies. Although some countries have embraced crypto, others are still grappling with categorizing digital assets in the existing financial ecosystem. China has been at the forefront of banning crypto. Whereas, the South American country of El-Salvador has adopted bitcoin as a legal contender.