Under the leadership of US President Joe Biden, the White House is likely to issue an executive order, calling on federal agencies to approach the cryptocurrency industry as a national security issue. According to the source familiar with the White House plan, the national security memorandum is expected to be released in the coming weeks, Barron said. The memorandum would mandate government bodies to analyze the crypto space and design a regulatory framework for all of its sectors, from Bitcoin, to stablecoins and NFTs. On Friday, Bloomberg reported that the White House is preparing to "put itself at the center of US crypto policy," citing unnamed sources familiar with the matter. The report revealed that senior administration officials are at an advanced stage of drafting the executive order.
The document reportedly "details the economic, regulatory and national security challenges posed by cryptocurrencies," requiring reports from government agencies within the second half of the year. Various studies conducted by federal agencies, including the Department of State and the Department of Commerce, would help tailor a comprehensive regulatory strategy. In charge of investigating all aspects of the sector, the reports of the agencies should evaluate the possible systemic impacts of cryptography, analyze its illicit use cases, but also weigh and protect the competitive role of the country in space. The U.S. government's increased focus on cryptocurrency regulation is coupled with exploring the possibility of issuing CBDCs, as the Federal Reserve recently released a preliminary report on the issue, opening a public feedback period through May. However, the United States is not alone in the matter, with countries like India and Russia currently mulling over ways to regulate the cryptocurrency sector and adopt tax laws.
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