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The administration of US President Joe Biden will instruct federal agencies to analyze digital assets and prepare the appropriate regulatory framework to ensure national security interests. Barron’s writes about this, citing informed sources.
According to the interlocutor of the publication, in the “next few weeks” the White House will publish an order in which it will require the departments involved to study cryptocurrencies, stablecoins and NFTs. The act will affect the State Department, the Treasury, the National Economic Council and the Council of Economic Advisers.
“The initiative aims to comprehensively study digital assets and develop a set of rules that will bring coherence to government actions in this space,” he said.
Barron’s source stressed that the memorandum is likely to affect the US National Security Council, since the cross-border nature of transactions with cryptocurrencies creates relevant risks.
The presidential administration will give the departments involved three to six months to prepare proposals. The White House will act as coordinator.
Bloomberg analyst Eric Balciunas noted that the administration’s initiative is consistent with his theory that SEC rejects applications for spot bitcoin-ETF by order from above.
In fact, you could reverse this and look at the seemingly head-scratching denial of what is clearly a good way to invest in crypto (vs using futures or CEF) was a foreshadow to a broader crypto crackdown. At least that’s one theory we threw out there in June. pic.twitter.com/IkfRI9z78U
— Eric Balchunas (@EricBalchunas) January 27, 2022
In his opinion, the publication of the memorandum will be good news for the market:
“Ironically, this is probably good news in terms of potential spot approval, as the Biden administration is set to issue an executive document in the next few weeks specifying what they want as a regulatory framework. This should clear the way for a spot bitcoin ETF.”
Bloomberg previously reported that Biden intends to unveil a nationwide digital asset strategy in February 2022. The agency said that federal departments will be instructed to assess the risks and opportunities of cryptocurrencies.
The organization for the promotion and protection of the interests of the cryptocurrency industry Coin Center also drew attention to another bill that could negatively affect the development of the industry.
On January 25, the U.S. House of Representatives Committee on Science, Space, and Technology introduced the America COMPETES Act of 2022. The Coin Center noted that the document, in its current form, would give the Secretary of the Treasury the power to “block any cryptocurrency transactions through financial intermediaries without any process, developing rules or limiting the duration of the ban.
2/ The so-called “special measures” provision (proposed by @jahimes) would essentially give the Treasury Secretary unchecked and unilateral power to ban exchanges and other financial institutions from engaging in cryptocurrency transactions. How would it do this? pic.twitter.com/f3tVow9nxA
— Jerry Brito (@jerrybrito) January 26, 2022
“The so-called ‘special measures’ provision will give the Treasury Secretary uncontrolled and unilateral power to prohibit exchanges and other financial institutions from engaging in crypto transactions,” wrote Coin Center Executive Director Jerry Brito.
He explained that the head of the Ministry of Finance already has the right to block accounts that, in his opinion, may be involved in money laundering operations. However, to do so, he must notify the public and give them the opportunity to comment. In addition, the blocking period cannot exceed 120 days.
The presented document removes these restrictions. According to Brito, the bill will be passed “in one form or another.”
Recall, the U.S. Financial Services Regulatory Service will consider a potential tightening of rules for trading cryptocurrencies.
The SEC also warned about increased oversight of the digital asset market.
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