An executive order regarding cryptocurrency is being considered by the Biden administration, with the White House mulling a government-wide approach to digital currency oversight, Bloomberg reported on Friday (Oct. 8), citing unnamed sources.
Under the proposed order, federal agencies would be tasked with doing a deep dive into cryptocurrencies and coming back with recommendations regarding the “relevant areas of crypto.” Areas explored could include “regulation, economic innovation and national security,” according to the sources.
See also: Crypto Firms Struggle to Comply With AML Regs
The directive could also guide the sharing of information about cryptocurrencies between agencies across the executive branch, one of the sources said.
Part of the executive order could also instruct other government departments that have not previously focused on crypto to turn some attention to it. There was also chatter that a crypto czar could be appointed to act as a liaison, one source said.
Should President Joe Biden decide not to move forward with the executive order, the White House will still release its cryptocurrency strategy to the public, per an administration official.
Read more: Gensler Signals More Crypto Regulation Ahead
U.S. financial regulators have been debating the best ways to provide oversight to the $2 trillion cryptocurrency market. Officials across multiple agencies have expressed concern about the risk to investors. Security agencies nationwide are also dealing with the role digital currencies play in high-profile ransomware attacks.
The lack of an appointed regulator has led to questions about jurisdictions in a market that is growing quickly in many directions.
The proposed draft, which was seen by “senior officials and regulators,” also indicated that the directive could help better define the roles of different departments and agencies and enlist their help with research, the sources said.
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