In a couple of weeks, US’s Joe Biden administration will release an executive order to task federal agencies with assessing the risks and opportunities of cryptocurrencies. This order will fall under the ambit of national security efforts. The White House seeks to analyze cryptocurrencies and employ a cohesive regulatory framework.
A source said the policy will holistically look at digital assets and develop a set of legislation to give coherency to what the administration is trying to achieve in this space. The State Department, Treasury Department, National Economic Council, and Council of Economic Advisers, as well as the White House National Security Council, will work together for the country’s crypto regulation.
Moreover, the United States is set to work with other countries on the synchronization of crypto rules and regulations. Biden administration intends to bring order to the haphazard approach that the American government is currently using to regulate crypto. Experts say that currently, different agencies including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), handle various aspects of the cryptocurrency market. However, there is little to no coordination and consensus in regards to the classification of different assets in the market.
Multiple meetings have been held about this and a directive is expected in a couple of weeks as to which path to take. This has made the crypto market hawkish as alarms had been raised about the ambitious Infrastructure Bill in 2021. Concerns had been raised for decentralized wallets, DeFi protocols, and others. This time around, the crypto market wants to cushion itself for the impact.