TL; DR Breakdown
- White House will release executive order on crypto
- The order will view crypto as a national threat
- White House talks tough on DeFi
Cryptocurrencies have continued to gain widespread adoption from all and sundry across the financial market. With this, many regulators have been looking for ways to regulate the assets in their respective countries. According to a new update, the White House will, in due course, release a new decree regarding its opinions on digital assets.
White House to view crypto as a national threat
According to the source of the news, the new update by the White House will be communicated as part of the new national security update that the government will issue. A peek into the document shows that the Biden administration will appoint several officials to head various sectors ranging from crypto to Non-fungible tokens and stablecoins. The officials in charge, along with their teams, will carry out deep research into the said aspects of the crypto sector.
This move is part of a grander plan by the White House to draw up a framework for regulating the crypto sector. The source also mentioned that the document would be the voice that will point to how the American government wants crypto regulation to take. These rumors have been making the rounds in the last few weeks without a clear source. A recent article by Forbes mentioned that the department in charge would look into the various aspects of crypto and determine the risks and illegal uses.
COMPES Act targets crypto exchanges
The Biden administration wants to tackle crypto as a means of national security because it is used to facilitate transactions across the border. It also highlights the basic capabilities of the DeFi sector and wants countries to start looking into it. Analysts have given their opinion on the White House proposition while stressing that this is the main reason why the SEC is not approving any ETFs at this time.
In a recent tweet by an official at Bloomberg, he feels that the move is part of a grander plan to crack down on the usage of crypto on a national scale. Asides from the White House update, the other one the market needs to worry about is the COMPETES Act. According to some executives, this new act will allow regulators to suspend or ban exchanges without notification. Meanwhile, politicians have been trying to clear the road for a softer backlash due to the new law.