Start as early as next month! The White House may become the center of cryptocurrency policy

The Biden administration has been considering an executive order on cryptocurrencies to tighten regulation.

The Biden administration is preparing to release a government-wide digital asset strategy as early as next month and ask federal agencies to assess the risks and opportunities it presents, Bloomberg News reported on Friday, citing people familiar with the matter.

The plan has been discussed several times by administration officials and is currently being drafted into an executive order, the sources said. The White House may become the center for dealing with cryptocurrencies.

For years, federal agencies have been studying the digital asset space or providing regulatory guidance on how different aspects of the cryptocurrency industry should comply with federal law.

Because of the "scattered management" adopted by federal agencies, there is still pressure on the White House to play a leadership role.

Crypto industry figures have complained that U.S. rules are not clear enough, while others worry that other countries’ official digital currency plans could threaten the dollar’s dominance.

The White House has been exploring ways to regulate the cryptocurrency industry, according to Dow Jones Newswires.

U.S. Securities and Exchange Commission Chairman Gary Gensler has said that U.S. securities exchange rules give it regulatory powers over digital currencies. He believes that there are “gaps” in digital currency regulation that Congress can help fill in various ways, such as regulating the process of cryptocurrency transactions.

The Biden administration has also been weighing an executive order from federal agencies that is expected to assign agency responsibilities in cryptocurrency regulation to prevent ransomware attacks and other cybercrimes.

The White House declined to comment on the latest Bloomberg report, citing people familiar with the matter.

It is worth mentioning that Bitcoin fell below $36,000 on Friday after hitting an all-time high of nearly $69,000 in November last year.

Separately, the U.S. government is also expected to consider the possibility of the U.S. issuing a government-backed digital token, known as a central bank digital currency, according to people familiar with the matter.

On Thursday, the Fed released a 35-page discussion paper for public comment, with a deadline of May 20.