The Biden White House Is About To Regulate Crypto

The White House is reportedly preparing an executive action that will instruct federal agencies with regulating cryptocurrencies ‘as a matter of national security’, a person familiar with the matter told Barrons.

According to this source, the national security memorandum, which is expected to be released in the next few weeks, would assign portions of the government the task of analyzing digital assets and putting together a regulatory framework that would cover cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).

Under current laws, there is no comprehensive legal framework for digital assets, or the regulation of cryptocurrency exchanges. The Securities and Exchange Commission has long called for more oversight of the crypto market.

On top of blockchain and digital assets already being difficult to understand well enough to be taken seriously, skeptics have often pointed to the lack of clarity in crypto-related policy as a reason to steer clear. Top executives in the industry like Sam Bankman-Fried have called for more regulation, saying it will clear the barriers to entry for many retail and institutional investors.

Here’s what you need to know:

It is not expected that the White House would provide proposals; instead, agencies would be allowed three to six months to develop proposals, with the White House serving as a policy coordination body.

It doesn’t seem like it’s going to be anything specific, just a directive for some agencies to gather proposals. So it’s not like some immediate Executive Order.

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,” said the source.

For the most part, you’d have expected them to already have done that.

My take? 

We have unaffordable housing, skyrocketing fuel costs, runaway inflation, an ongoing pandemic, crippled supply chain, rising crime, border immigration crisis, and a possible war with Russia but we should definitely tackle crypto regulation so Americans will feel safe.

We want crypto to be treated fairly, regulated using common sense, and cleared to enable opportunity and equality for everyone. It’s my hope that they don’t screw this up . . . though I’m not getting my hopes up.