The Biden government is preparing to give an order that will allow the administrative agencies to carry out risk analysis on the cryptocurrency and find out whether it is a national security threat or not.
There is news about the issuance of the executive order in some weeks. These orders are all about some actions that the Government of the United States must have to take that are related to digital currencies.
When it comes to the event where the orders will be issued, it is worth mentioning that a source close to the White House has revealed that this executive order will likely be disseminated in a national security memorandum. This memorandum of Biden will allocate some jobs to the various administrative bodies such as studying and researching stablecoins, crypto, and nonfungible tokens. The main aim of doing this task is to generate an actionable regulatory plan.
Other news sources also indicate the government’s plan to issue executive orders to regularize digital assets. According to Forbes, the government entities will complete their reports about their findings on cryptocurrency till the mid of the ongoing year. The administrative bodies must also analyze the systematic risks associated with crypto and its illegitimate uses.
The logic or reasoning of the executive order is that cryptocurrency is a cross-border medium that is utilized for the shifting of money. Furthermore, the decentralized blockchain technology on which the cryptocurrencies operate tends to circumvent geo-specific rules, indicating that administration should go for synchronized int’l rules by including other countries.
There is another piece of legislation that gives rise to distress and tension in the crypto industry was stated by House Democrats. The name of the legislation is America COMPETES Act, and it was proposed on Tuesday. Jerry Brito, the executive director for the Coin Center that is the Washington D.C based think tank, stated that a single provision in the bill that has been proposed would permit the Treasury Secretary to ban the operation of crypto exchanges without any preceding notice. Furthermore, according to Brito’s tweet, it is clear that he thinks the bill is more likely to be passed “in some form.”
On the other hand, allies of the lawmakers are struggling to ease strict sides of the legislation that have been passed already. After hearing the pleas of the experts from the crypto industry, the agents of the house’s bipartisan group have questioned Janet Yellen (the Treasury Secretary nominated by Biden) to shed some light on the Infrastructure’s bill aspects that are related to the digital currencies or assets. The last November, the Infrastructure Bill was signed due to a few controversies because its definition of a broker is extremely extensive. It includes transaction validators, software developers, miners, and node operators.
Hence, we can say that due to all these orders by the United States Government, it is difficult to figure out the future of cryptocurrency, particularly in the U.S and around the globe in general. What is your stance about it? Feel free to share in the comments section.