Biden wants to unleash crypto regulation wave

As Barron’s According to anonymous sources, the Biden Administration is working on an executive order for cryptocurrencies. Accordingly, the regulation of this would be an issue of “national security”. Triggered by the extreme volatility on the crypto market in the past few weeks, it is about examining how big the risk is from the digital currencies. In addition, the government would be under more pressure than ever to protect its population from severe losses. According to the insider source, this “National Security Memorandum” is to be implemented in the next few weeks.

Crypto, stablecoins and NFT under the magnifying glass

The justification for the regulation is that it is about the cross-border transfer of money. In addition, blockchain technology would have the ability to bypass “geo-specific surveillance”. Federal authorities should therefore take a closer look at companies that have anything to do with crypto, stablecoins or NFTs. It would supposedly be about working out a regulatory framework.

“Special measures” as an excuse to freeze accounts

As a “regulatory framework” one can use the Draft American COMPETES Act not exactly designate. The proposal by the House of Representatives Committee on Science, Space and Technology provides, among other things, that the Treasury Department should be given the right to freeze suspicious accounts and transactions at financial institutions (including crypto exchanges) without prior notice. In the area 5318A entitled “Prohibitions and Conditions on Special Money Transfers” specifies this right of access to all operations outside of the United States.

Accordingly, the freeze would be an appropriate tool whenever the Ministry of Finance had to take “special measures”. So far, the Ministry of Finance has had to inform the public if money laundering is suspected. This condition would, according to one blog post by Jerry Britos, Executive Director of the coin centersbe abolished.