The Biden administration has plans to implement a government strategy around regulating cryptocurrencies next month.
An upcoming National Security Council memorandum will instruct federal agencies to investigate the best ways to utilize the opportunities inherent in crypto and mitigate the risks. Cryptocurrencies have long been just outside the edge of the mainstream. But as more and more advisors and financial institutions begin to see the value of digital assets, they are becoming more mainstream. A solid government policy around crypto could further push it into the establishment.
Senator Cynthia Lummis (R-WY) plans to introduce a bill to regulate cryptocurrencies and integrate them into the financial system as well as create taxation rules and consumer protections.
Crypto has been having a wild few weeks. Yesterday say bitcoin hit new lows. Ethereum is down 53%, and solana has fallen 64%. Cowen Analyst Jaret Seiberg said on Monday that the administration’s intervention is “symbolically significant as the White House would be acknowledging that crypto is becoming economically important.” Seiberg added, “The White House would not issue such an order if it was not convinced that crypto will continue to grow and spread throughout the economy.”
It is speculated that the White House’s plans include policy around policing digital wallets and trading platforms and addressing the use of cryptocurrency for illicit purposes.
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For more news, information, and strategy, visit the Crypto Channel.