Barron's says the White House will soon release an executive order that will give federal agencies responsibility for developing new rules that cover cryptocurrencies, stablecoins and NFTs.
Joe Biden's administration wants to introduce new crypto regulations as a matter of national security, according to a report.
Barron's says the White House will soon release an executive order that will give federal agencies responsibility for developing new rules that cover cryptocurrencies, stablecoins and NFTs. A source told the publication:
"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."
The White House National Security Council will be among the government bodies involved in these efforts, amid concerns over the implications that cryptocurrencies can have on the economy.
Washington also plans to spearhead efforts to create consistency on digital assets regulation around the world. Given how crypto is cross-border, tougher rules may only have teeth if they stretch internationally.
What Does This Mean?
Speculation that Biden was planning these measures has been growing for some time — with Bloomberg releasing similar reporting late last week. The publication said the executive order "puts the White House at the center of Washington's efforts to deal with cryptocurrencies."
Millions of Americans now own cryptocurrencies, but there has been little in the way of clarity when it comes to regulation. This has exasperated government bodies and businesses alike, with the industry warning that the uncertainty is stifling innovation.
A definitive course of action may not be determined for a while, as each government agency could be given up to six months to deliver their proposals on which policies should be introduced.
The gradual drip-drip of information appears to have had little impact on Bitcoin's price over the past 24 hours — but could pose headwinds later in the year when the White House unveils how it plans to deal with cryptocurrencies.
On Thursday, a report by Decrypt suggested that a "sophisticated plan" is being pursued that would hand stablecoins to big banks — shunning Tether while embracing "regulator-friendly" issuers such as Circle and Paxos. The article suggests that Treasury Secretary Janet Yellen and Senator Elizabeth Warren — both vocal critics of cryptocurrencies — have been spearheading these efforts.
Jeff John Roberts, who wrote the report, described this as a "crafty strategy" that is designed to "bring the free-wheeling crypto economy to heel" — slowing the industry's growth.
