Biden Administration Tries To Regulate Bitcoin For “National Security Reasons”

January 28, 2022 9:20 pm

The Biden Administration has recently announced that they are intending to establish regulations and policies regarding Bitcoin and other major cryptocurrencies.

The reason for this was because the regulation for these new industry is currently lacking and is not consistent due to legislation for the industry being different across different places.

Currently, the White House is working with several agencies to better understand the risks and opportunities that come with Bitcoin and other crypto.

As a result, the administration has also issued an executive order to ensure that this is completed.

BitcoinMagazine reports:

The order is set to come under the umbrella of national security efforts as the administration seeks to analyze cryptocurrencies and employ a cohesive regulatory framework that would cover Bitcoin, cryptocurrencies, stablecoins, and NFTs, Barron’s reported Thursday.

“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,” a person familiar with the White House’s plan told Barron’s.

“Because digital assets don’t stay in one country, it’s necessary to work with other countries on synchronization.”

The regulatory efforts would reportedly 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 gauges that cryptocurrencies have “economic implications for national security,” per the Barron’s report.

By doing all of this, Biden is looking to revise the way the government is currently handling crypto regulations and bring more “order” to the industry.

That being said, this can be quite difficult to do due to the many variations of crypto assets that are available where some are treated differently than others by different agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The recent news here from the Biden administration is attracting a lot of suspicion especially as the executive order was issued based on reasons of national security.

Many see this as an excuse for the current administration and the government to exert greater control over the industry.

There have been previous bills that the government have tried to push forward that would have presented risks  for crypto such as the Infrastructure Bill which would make it difficult for the crypto world to function because of all the limitations it places on the DeFi space, decentralized wallets, and crypto firms.

The administration has not commented on specifics and the reactions show that the outlook for Bitcoin remains bullish still.

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