The United States government is reportedly on the brink of using an order that will empower regulatory authorities to start a thorough risk analysis on cryptocurrencies and their usage and potential threat to the country.
Barron’s announced that its source, who has inside knowledge of the White House’s plan, believes that the executive order will be incorporated into a national security memorandum. The memorandum released by the President will offer the authority to different government entities to engage with the innovations on Blockchain Technology like crypto, stablecoins, and non-fungible tokens (NFT), with the aim of creating a functional regulatory framework.
According to Barron’s source,
“This is designed to look holistically at digital assets and develop a set of policies that give coherence to what the government is trying to do in this space.”
There have been rumors of the coming of an executive order that will cater to the affairs of cryptocurrencies. A few days ago, Forbes stated that the report of the findings from the government entities will be made available in mid-2022. The report will analyze “the systemic risks of cryptocurrencies and their illicit uses.”
In other news, the House had proposed a bill that will change the crypto space in the United States, and it is called the America COMPETES Act. The bill has attracted attention from the crypto community. Jerry Brito, the Executive Director for Washington D.C.-based think tank Coin Center, announced that a provision in the proposed COMPETES bill will give authority to the Treasury Secretary to place a ban on any crypto exchange without the need of a notice or a hearing.
According to his tweet thread, Brito stated that,
“Included in the America COMPETES Act just introduced in the House, and which will very likely pass in some form, is a provision that would be disastrous not just for cryptocurrency but for privacy and due process generally.”
The so-called “special measures” provision (proposed by @jahimes) would essentially give the Treasury Secretary unchecked and unilateral power to ban exchanges and other financial institutions from engaging in cryptocurrency transactions. How would it do this?
The new provision would do three things:
- Add “certain transmittal of funds” to the list of things that can be banned by the Secretary
- Eliminate all public notice and comment requirements
- Eliminate the 120-day limitation for measures imposed without regulation”
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