White House to strengthen crypto industry regulation
U.S. President Joe Biden's administration is considering issuing a directive to federal agencies that would require them to examine the crypto industry and provide appropriate oversight recommendations, Bloomberg reports.
The Biden administration is weighing an executive order on cryptocurrencies as part of an effort to set up a government-wide approach to digital tokens as an asset class https://t.co/x1mm0aWFEZ— Bloomberg (@business) October 8, 2021
According to the report, the order will apply to the Treasury Department, Commerce Department, National Science Foundation, and national security agencies.
The initiative will aim to coordinate the various agencies, as the Biden administration wants to develop a unified approach to digital assets. In addition, the document will clarify the responsibilities of the agencies in terms of oversight of the cryptocurrency industry.
The publication noted that officials are also considering appointing a responsible person to act as a coordinator on the issue.
According to Bloomberg's sources, a decision has not yet been made on whether to publish the order. A presidential administration official noted that even if Biden backed out of the idea, the White House would still unveil an overall strategy on cryptocurrencies.
The proposed initiative is yet another confirmation that the U.S. authorities have no intention of following China's example and banning cryptocurrencies. Instead, they have decided to take the path of regulation.
In late September, the head of the Federal Reserve Jerome Powell said that the agency does not plan to block digital assets, but considers it necessary to include some of them in the legal field.
In October, the head of the SEC, Gary Gensler, made a similar statement.
SEC Chair Gary Gensler says the U.S. won’t follow China’s lead in banning digital tokens https://t.co/j2MkNPJv5h— Bloomberg Crypto (@crypto) October 5, 2021
He also stressed that most cryptocurrencies meet the status of investment contracts, and stabelcoins are a threat to financial stability.
SEC's Gary Gensler elaborating on his comparing stablecoins to poker chips: "A lot of these stablecoins — excuse me for saying it — grew up over the last 8 years inside of trading platforms around the globe to avert anti-money laundering laws and tax compliance."— Brian Cheung (@bcheungz) October 5, 2021