Bitcoin is likely to be the focus of a risk assessment by the Biden Administration. This is because of potential national security danger.
After Joe Biden takes office, the U.S. government is likely to publish an executive order. This concentrates in addressing digital assets.
President Trump’s national security team is anticipated to sign off on the draft memorandum. The paper is already available. That statement is according to a person familiar with the White House.
The purpose is to build a workable regulatory framework. Biden’s memorandum would assign some government agencies. The research is about crypto, stablecoins, and non-fungible tokens (NFT).
Additionally, it builds a set of regulations. This lends coherency to what the government is doing in this sector.
Bitcoin Rumors
Cryptocurrency-related rumors have been circulating in recent days. As Forbes reported earlier this week, these government agencies plan to release reports. This will be about on their findings by the middle of 2022. They will examine the systemic hazards of cryptocurrencies. Also, their criminal uses.
The executive order sees bitcoin as a threat to national security. Because of its cross-border money transfer method. Additionally, the capacity of decentralized blockchain technology to evade geo-targeted surveillance or legislation. Because of that, the government may seek to harmonize international regulations with other countries.
According to Bloomberg’s Eric Balchunas, who is a senior ETF analyst, the Biden Administration’s view cryptocurrency as a national security threat. They rejected number of Bitcoin (BTC) spot ETFs many times.
In a tweet dated January 28, he called the new events a larger crypto crackdown.
Broader Investigation
The Democrats in Congress introduced the America COMPETES Act on January 25th. It is another piece of legislation that has the crypto sector concerned. Think tank Coin Center’s executive director, Jerry Brito, noted that the Treasury Secretary would be able to ban crypto exchanges. This includes Bitcoin from operating. This action is without prior notice under a provision in the proposed bill.
According to Brito, the law will eventually pass in some form or another.
Meanwhile, politicians’ backers are working to smooth down the legislation’s rougher edges. Congress has requested Biden-nominated Treasury Secretary Janet Yellen. It is to clarify portions of the Infrastructure Bill. The clarification pertains to the digital currencies. This echoes the requests of crypto industry experts.
On the other side, the Infrastructure Bill in November was signed into law. This is despite the fact that it includes miners, software developers. Additionally, the transaction validators, and node operators with its definition of a “broker.”
On January 26, Congress sought to limit the amount of information that brokers can get about Bitcoin. It will prevent creating the un-level playing field for transactions in digital assets. This will also affect those who required to supply them.
Because of the way the bill now defines them, some brokers are unable to carry out in November. Authentication is required from senders and receivers. To achieve this, encrypted messaging is utilized
