According to unnamed sources cited by Bloomberg, the White House is preparing an executive order on the crypto market.
The report states that the Biden Administration plans to set up a government-wide system for regulating the sector with the order.
It was suggested in the report that any order would direct federal agencies to conduct research and produce recommendations
People familiar with the plan, who asked not to be named to discuss plans that are still being considered, said that federal agencies would be required to examine and make recommendations on relevant areas of crypto regarding financial regulation, economic innovation, and national security.
"The framework would impact a variety of government agencies, including the Treasury Department, financial regulators, the Commerce Department, and the National Science Foundation."
It is the responsibility of Congress to create new laws regarding crypto assets, not President Biden. Executive orders, however, allow him to exert significant power over various agencies, prioritizing activities and providing law enforcement guidelines.
As more government officials and the White House make their views known about the U.S 's crypto priorities in the coming weeks, the larger strategy is likely to become apparent.
Even though crypto companies have long anguished about the lack of clarity regarding what is legal under US law, the rules, if ever issued, may be harmful to the industry given the negative perspective many elected officials have taken on crypto
Increasingly hawkish policymakers appointed by Biden are starting to step up oversight of the rapidly growing crypto market. Investors are being protected only to a limited extent as the market has grown to more than $2 trillion.