The Biden administration is examining new ways to regulate Bitcoin and cryptocurrency.
According to a new report in the Washington Post, White House officials are being briefed by the Treasury Department about cryptocurrency risks.
They’re looking at how to ensure the industry is properly enforced without stifling innovation or damaging the markets.
“Administration officials are discussing whether guardrails on cryptocurrency can be imposed while still allowing investors to ‘dogecoin to their heart’s content.’”
Anonymous sources say potential “gaps” in oversight related to the crypto market are being studied in case they could be used to finance illicit or terrorist activities.
The recent volatility in digital assets is also raising concerns about whether average investors purchasing cryptocurrency need government protections, although federal regulators don’t believe the large swings in the crypto markets will threaten the broader stability of the financial markets.
“They’re aware of the fact that there are all kinds of risks in the abstract and things to look out for, but they are still largely in a wait-and-see posture,” said a source.
The White House and the Treasury Department are also publicly backing a new plan to target tax avoidance through cryptocurrency.
The plan would beef up staffing at the IRS and upgrade the agency’s technology to better track and enforce crypto transactions.