Biden administration to weigh in on crypto

JThe Biden administration plans to implement a government strategy around cryptocurrency regulation next month.

An upcoming National Security Council memorandum will ask federal agencies to investigate the best ways to use the opportunities inherent in crypto and to mitigate the risks. Cryptocurrencies have long been just outside the mainstream. But as more advisors and financial institutions begin to see the value in digital assets, they are becoming more mainstream. Strong government policy around crypto could push it further into the establishment.

Senator Cynthia Lummis (R-WY) plans to introduce legislation to regulate cryptocurrencies and integrate them into the financial system as well as create tax rules and consumer protections.

Crypto has had a crazy few weeks. Yesterday, let’s say bitcoin hit new lows. Ethereum is down 53% and Solana is down 64%. Cowen analyst Jaret Seiberg said Monday that the administration’s intervention is “symbolically significant as the White House would recognize that crypto is becoming economically important.” Seiberg added, “The White House would not issue such an order unless it was confident that crypto would continue to grow and spread throughout the economy.”

It is speculated that the White House plans include a policy on the surveillance of digital wallets and trading platforms and the use of cryptocurrency for illicit purposes.

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