Politics

Biden Reportedly Plans To Regulate Crypto Over National Security Concerns

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President Joe Biden is set to announce guidelines for regulating cryptocurrencies in the coming weeks, Barron’s reported.

The initiative will involve the State Department, Treasury Department, National Economic Council, Council of Economic Advisers and White House National Security Council, according to Barron’s, and it will charge the agencies with developing a coherent regulatory framework for digital assets.

“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 matter told Barron’s.

The plans are expected to be announced in a national security memorandum, which will argue that the regulation of cryptocurrencies is a matter of national security, the outlet reported. The agencies will also reportedly work with foreign countries to develop a coherent regulatory framework.

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

Cryptocurrency regulation has become the subject of recent legislative efforts as more Americans adopt and use digital assets; the bipartisan infrastructure bill signed into law in November 2021 included several cryptocurrency tax provisions opposed by the industry as onerous and vague.

The Biden administration has previously signaled a desire to impose heavy regulations on digital assets, with Treasury Secretary Janet Yellen calling cryptocurrencies “extremely inefficient,” and Securities and Exchange Commission (SEC) Chair Gary Gensler calling the crypto industry “the Wild West.”

The Treasury Department issued a report on stablecoins, or digital assets pegged to currencies like the U.S. dollar, urging more regulation in November 2021.

The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.