White House Preparing Executive Order On Cryptocurrencies

According to multiple media reports, the administration of U.S. President Joe Biden is preparing an executive order that would require government agencies to conduct risk analysis on cryptocurrencies as a national security threat.

Joe Biden’s White House is expected to issue an executive order in the coming weeks about actions the U.S. government will take regarding digital assets.

Media reports say the executive order will be issued in a national security memorandum. Biden’s memorandum would assign some government entities to study cryptocurrencies, as well as stable coins and non-fungible tokens (NFTs) with the goal of developing a regulatory framework.

The rationale for the executive order falling under national security is that cryptocurrencies are a cross-border, international tool for shifting money. The ability of decentralized blockchain technology to circumvent geo-specific surveillance or rules means the administration may push for synchronized international regulations with other countries.

Another piece of legislation worrying the cryptocurrency industry is the “America Competes Act,” which allows the U.S. Treasury Secretary to ban cryptocurrency exchanges from operating. The America Competes Act has not yet been passed by the U.S. Congress.