Hello, and welcome to this week's Overbit Insights. Our first item of the week looks at how the United States government may broaden its attempts to analyse and regulate the nearly $2 trillion digital asset sector.
Bloomberg reported Friday, citing anonymous sources, that the Biden administration is drafting an executive order requiring federal agencies to research the crypto business and make recommendations on their control.
The directive would encompass the Treasury Department, Commerce Department, National Science Foundation, and national security agencies, according to the report.
In addition to directing authorities to investigate various industry elements, the directive "would clarify the responsibilities" that multiple agencies have concerning crypto and blockchain.
Requests for comment were not immediately returned to the White House, the Commodity Futures Trading Commission (CFTC), or the Securities and Exchange Commission (SEC), and the Treasury Department declined to comment.
For years, federal agencies have been examining or providing regulatory guidelines on the digital asset market. The Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) have issued guidance letters, informal statements, and public rulemaking efforts to direct how various aspects of the crypto industry should comply with federal law.
Earlier this year, the OCC, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve — three federal bank regulators – created a "sprint team" to coordinate their efforts on crypto. One of the executive order's measures, according to Bloomberg, would coordinate this endeavour.
In recent months, the Biden administration has increased the US government's focus on cryptocurrency. In response to a wave of ransomware assaults, the Treasury Department's Office of Foreign Assets Control sanctioned a cryptocurrency exchange for the first time in September.
Closing out this week's edition of Overbit Insights, we take a look at China's latest expansion for its cryptocurrency ban.
According to Reuters, the nation has included crypto mining in a draft "Negative list" that restricts or outright prohibits Chinese and foreign investors from investing in a specific industry.
This means that Interested parties would need to get permission to invest in any crypto-mining related business, which is doubtful given China's anti-crypto attitude.
According to Bitcoin.com, the list is up for public comment through October 14th, according to China's Development and Reform Commission. However, it's unlikely that public feedback will affect the way crypto mining is done.
Recently, China has declared cryptocurrency transactions to be unlawful, alleging that the digital currency has facilitated money laundering and other financial crimes. The nation has been experimenting with its own cryptocurrency, and others speculate that it just wants a more stable currency that it can manage directly.
Since China's crackdown in September, the price of Bitcoin has risen by more than 30%; these restrictions may have given crypto a boost when it was about to plateau. Though many newcomers saw this crackdown as a time to exit, crypto veterans knew that most China FUD has almost always been repurchased up shortly after.
Thanks as always for reading Overbit Insights. We'll continue to keep you updated on the latest trends, stories and highlights!