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NEWS Crypto Weekly
Crypto Rules Needed for National Security Reasons, says White House A
s a matter of national security, the Biden administration will issue an executive order requiring federal agencies to regulate cryptocurrencies such as Bitcoin. A regulatory framework covering cryptos, stablecoins, and non-fungible tokens will be put together by several parts of the government, according to sources. By taking a holistic approach to digital assets, the government hopes to provide coherence to what it's trying to accomplish. The State Department, Treasury Department, National Economic Council, and Council of Economic Advisers will be involved as part of the initiative. According to the individual, since crypto has economic implications for national security, the White House National Security Council would also be involved. The administration will also instruct agencies to harmonize regulations of digital assets between countries. "Since digital assets don't remain in one country, it is necessary to work with
February 2022 | Volume 13
other countries on synchronization." There were no recommendations from the White House. The White House will act as a policy coordinator and give agencies three to six months to develop proposals. Officials from the White House declined to comment. The White House wants to bring order to the haphazard way the government has been regulating crypto. This industry is regulated by the Securities and Exchange Commission and the Commodity Futures Trading Commission. There is, however, no consensus on how to oversee exchanges, stablecoins, and high-yield lending products or whether some tokens should be classified as securities. Over the last few months, Congress has held several hearings on cryptos, exposing the partisan divide between Republicans and Democrats over regulation of the industry. Congress is also being urged to draft rules by the Biden administration. In November,
the White House released a report on stablecoins, recommending that Congress act promptly to regulate the industry. The Federal Reserve has also commented on digital currencies. Earlier in January, the Fed released a report on a centralbank digital currency, or CBDC, which discussed the pros and cons of digitizing the dollar. According to the report, the Fed could begin work on the project if the White House and Congress supported it. A Treasury Department spokesman called the report a crucial step forward in discussions about a CBDC. Several countries are intensifying their scrutiny of crypto as a matter of national economic security. Russia's Central Bank and Finance Ministry said that Bitcoin mining and trading should be tightly regulated this week. Russia's President Vladimir Putin urged regulators to come to a unanimous decision on how to regulate space Wednesday.
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