REPORT: The Biden Administration to regulate Bitcoin as a matter of National Security

The White House wishes to bring order to the 'haphazard approach' that regulators are currently taking toward Bitcoin and cryptocurrency.


BIDEN ADMINISTRATION TO REGULATE BITCOIN AS A MATTER OF NATIONAL SECURITY: REPORT
Biden | Image: The Japan Time

According to multiple reports, the White House wants to establish a unified set of policies to regulate Bitcoin and cryptocurrencies, as legislation and enforcement are currently dispersed across sectors and agencies.


Bloomberg first reported that the Biden administration will issue an executive order in the coming weeks directing federal agencies to assess the risks and opportunities posed by Bitcoin and cryptocurrencies.


According to Barron's, the order will fall under the umbrella of national security efforts as the administration seeks to analyze cryptocurrencies and implement a cohesive regulatory framework that would cover Bitcoin, cryptocurrencies, stablecoins, and NFTs.


"This is intended to look holistically at digital assets and develop a set of policies that give coherence to what the government is attempting to do in this space," a person familiar with the White House's plan told Barron's.


"Because digital assets do not stay in one country, synchronization requires collaboration with other countries."


According to the Barron's report, the regulatory efforts would involve the State Department, Treasury Department, National Economic Council, and Council of Economic Advisers, as well as the White House National Security Council, as the administration assesses that cryptocurrencies have "economic implications for national security."


According to the person, the White House's plan is to "bring order to the haphazard approach that the government is now using to regulate crypto."


Currently, different agencies, such as the Securities and Exchange Commission and the Commodity Futures Trading Commission, deal with different aspects of the cryptocurrency market, but there is little coordination and consensus when it comes to the classification of the market's many different assets.


According to Bloomberg, senior administration officials met several times on the plan, and the directive is expected to be presented to President Joe Biden in the coming weeks.