The Biden administration is reportedly planning a wide range of crypto oversight and might issue an executive order for the agencies regarding it. The Executive order might be aiming to combat the growing threat of ransomware attacks like the Colonial Pipeline incident and other cybercrime associated with crypto-assets.
Reuters reported, the US National Security Council spokesperson confirmed that NSC and NEC are working together to keep in check the illicit use of crypto-assets, especially for ransomware attacks, which are increasing year by year.
“The NSC and NEC are coordinating across the interagency to look at ways we can ensure that cryptocurrency and other digital assets are not used to prop up bad actors, including ransomware criminals,” she said.
The regulatory oversight on the crypto market has been a hot topic for months. While several lawmakers were calling for strict measures, others were advocating for better regulations to help the crypto market growing.
Biden administration’s attitude on crypto hasn’t pleased crypto enthusiasts; however, the recent reassurance from the Federal Chairman and SEC chief that the US has no plans to ban crypto like China gave crypto proponents a sigh of relief.
The White House might not have any plans of banning crypto, but that doesn’t necessarily mean it would also get a regulatory free pass. Recently, the Department of Justice (DOJ) unveiled a crypto crackdown task force, according to Bloomberg News. The new task force would look into various crypto exchanges, especially those that offer crypto-mixing services, to keep a check on illicit crypto transactions.
October 6, Deputy Attorney General Lisa Monaco said in a statement:
“Today we are launching the National Cryptocurrency Enforcement Team to draw on the Department’s cyber and money laundering expertise to strengthen our capacity to dismantle the financial entities that enable criminal actors to flourish — and quite frankly to profit — from abusing cryptocurrency platforms.”
The topic of crypto regulations is one of the most divisive among blockchain enthusiasts. On the one hand, advocates of anarcho-capitalism and privacy – like Roger Ver or Elon Musk, for example – argue that cryptocurrencies do not need regulations, and government efforts simply seek to monitor the ecosystem, subtract freedom from users, and ultimately control the people.
On the other hand, the more pragmatic ones – such as Michael Saylor, Brad Garlinghouse, or influential politicians – claim that clear regulations will provide the greater legal safety needed for the mainstream public to feel confident enough to invest in cryptocurrencies, also resulting in a greater influx of institutional investments.