Biden administration mulls executive order on increasing crypto oversight

As the cryptocurrency industry continues to heat up, the White House could soon bolster oversight over the new asset class. A recent report hinted that US President Joe Biden could issue an executive order, although it has not been confirmed.

White House tasks agencies to examine crypto assets

The Biden administration is considering an executive order for federal agencies to study digital assets as part of its approach to tighten regulations on cryptocurrencies. Federal agencies would be assigned to study and offer recommendations on relevant areas of the new asset class, including financial regulation, economic innovation and national security.

The executive order is targeting the growing threat of ransomware and other crimes associated with cryptocurrencies. Ransomware attacks have led to millions in damages, including the Colonial Pipeline incident. 

Recently, the Biden administration has increasingly worked on the regulation of cryptocurrencies, as the Treasury Department’s Office of Foreign Assets Control sanctioned a crypto exchange following ransomware attacks earlier this year.

According to a Bloomberg report, officials have deliberated over appointing a White House crypto czar to lead the work on digital currencies. “Czar” is an informal title given to high-ranking executive branch officials who focus on issues in one specific area.

As regulators are increasingly worried about the lack of regulations and growing economic issues related to cryptocurrencies, the draft directive is part of the White House’s effort to create a comprehensive strategy for the new asset class.

The draft order would help shed light on the responsibilities between different agencies and provide them with tasks to examine various topics and report back on the findings. Agencies, including the Treasury Department, Commerce Department’s financial regulators and the National Science Foundation, would be involved.

The agencies would also need to examine digital assets in areas such as consumer protection, competition policy, and research and innovation.

So far, a decision is still yet to be made on whether to release the executive order. If President Joe Biden does not choose to move forward, the administration will still allow the overall strategy for cryptocurrencies to be made public, according to an official.