The United States government is considering to place an executive order on cryptocurrencies as plans move in full gear to set up a nation-wide approach to regulate the digital asset, according to people in the white house.
The plan also aims to harmonize agencies’ work on digital currencies throughout the entire executive branch, the people said. The initiative would force agencies and departments that have been negligent about crypto to focus on it. The plan also considers appointing a White House crypto Chief to act as a point person on the issue.
The move will mandate federal agencies to research and endorse relevant sectors of crypto — focusing more on national security, regulation and economic innovation , the people, who pleaded for anonymity, said.
The White House has refused to comment on the plan.
The directive is an effort by the United state government to direct a broad strategy for digital assets, which have turned a big worry for officials in government as they are becoming well liked among ordinary Americans.
Federal security agencies in the United States are having a hard time dealing with cases of digital currencies playing a role in ransomware attacks. In July, Bloomberg reported that over 1500 business has been attacked by crypo aided randomware attacks.
Regulators in the Biden government are assuming a seemingly aggressive position about the crypto market as they seek to step up supervision of the digital asset. Some have stated concerns about the lack of investor preservation and possible risks to the dollar stability as the market has grown to more than $2 trillion.
This comes just few weeks after the Billionaire Elon Musk advised the United States government to let crypto be, when asked whether the U.S. government should be involved in regulating the crypto space.
“I would say, ‘Do nothing,’” he said.
A more aggressive proposal has been pushed in december 2020 by the Treasury Crimes Enforcement Network (FinCEN) under the last government of Donald Trump.
In a related development,
Pat Toomey, a senator in the United States Congress is not happy with the United State Treasury department’s anticipated work on stablecoins.
He made this known in a letter to the secretary of the United States Treasury, Janet Yellen, dated October 7, 2021.
Toomey lambasted the procedures backing the anticipated dossier on stablecoins that is coming from the president’s work group (pwg).
Toomey’s letter expressed worry that the PWG has contained the pending framework under lock and key without soughting important input from the crypto industry and stablecoin operators.
According to him,
“Since the PWG announced its stablecoin review, the administration has revealed very little about the process it is using to draft this report. It is my understanding that stakeholders have had only minor involvement in the process, with just a few stablecoin providers invited to participate. Those invited participants were given a mere five minutes each to make highly structured presentations.”
The senator also warned against bringing the Financial Stability Oversight Council against crypto currencies.
“The administration would do well to remember that America’s longstanding status as the world’s leading economy is due, in no small part, to our tradition of fostering technological innovation, not stifling it,” the letter concluded.