The Biden administration is reportedly exploring the possibility of installing guardrails on cryptocurrency following a number of meetings in which the crypto space was the subject. Bitcoin and other digital currencies are under intense scrutiny at the moment, with the market’s recent behavior garnering quite a lot of attention.
The IRS has already moved to install new regulations requiring all cryptocurrency transactions exceeding $10,000 to be reported. And, according to a report from the Washington Post, officials from the Biden administration have been “studying potential gamps in oversight” as it pertains to cryptocurrencies and whether they can be used to finance terrorism and other illegal activities.
Protection For Honest Buyers
The report also claims that the White House and Treasury Department are throwing their weight behind a model that will pay particular attention to crypto possibly becoming an avenue for tax evasion. Potential measures to protect the average investor looking to purchase digital currency are also being discussed.
Bitcoin, in particular, has come under pressure on several fronts in recent times. Elon Musk does not seem as big of a proponent as he was when it was revealed that Tesla had purchased $1.5 billion worth of the world’s biggest cryptocurrency. The automobile manufacturers have since suspended BTC payments for their vehicles, citing the exorbitant consumption rates prompted by the coin’s mining.
On Monday, Musk disclosed having met with miners in the U.S for talks over cleaner mining and the formation of a Bitcoin Mining Council.
Meanwhile, Chinese miners have been moving operations offshore and selling their mining machines following the government announcing plans to crack down on Bitcoin mining.
No Threat At The Moment
As it stands, federal regulators in the United States don’t reckon that the volatility in the crypto market can threaten the broader stability of financial markets but they are all for monitoring the risks, with the Biden administration discussing the placement of guardrails on crypto that will still allow investors to “dogecoin to their heart’s content.”
“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,” a source close to the discussions was quoted as saying.
It appears that the treasured decentralization blockchain boasts could be under serious threat, given the above. It’s also been reported that the House has passed legislation instructing federal regulators to study and clarify rules for digital currencies.