The White House will issue an executive order commanding multiple federal agencies to coordinate the creation of a cryptographic regulatory framework proposal in the coming weeks.
The Biden administration seeks to bring order to the problem of cryptocurrencies and crypto market investments, given that the US government has taken a haphazard approach to the rapidly growing technology up to this point.
As a matter of national security, the federal government intends to issue an executive order that would regulate Bitcoin and other cryptocurrency trading. According to Barron's, a person familiar with the Biden administration's strategy disclosed the idea.
President Joe Biden has made it clear that he wants to regulate cryptocurrencies as quickly as possible since becoming office. They are viewed as an exceptional source of tax income for the government and may introduce tax policies for those who buy and sell cryptocurrency.
According to the source, the government will soon publish a national security brief directing several federal agencies to develop a basic regulatory framework for the whole business, including cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).
Creating a Cohesive Regulatory Policy
The Treasury Department and the State Department will coordinate the endeavor, which will include the National Economic Council and the Council of Economic Advisors. In light of the economic implications of buying or selling cryptocurrencies for national security, the White House's National Security Council will also provide guidance. "This is intended to take a comprehensive look at digital assets and produce a set of regulations that bring the government's efforts in this area together," the person added.
It emphasized that government agencies' efforts must be coordinated with those of other allies who are actively working on the regularization of crypto assets.
"Because cryptocurrencies don't stay in one nation, synchronization requires collaboration with other countries."
According to the site, the time range for submitting crypto rule ideas is three to six months, with the White House functioning as policy coordinator. However, White House officials have made no public remark on this too far.