US Government Not Endorsing Regulation on Bitcoin Soon, Says White House Official
US Government Not Endorsing Regulation on Bitcoin Soon. The United States government will not be endorsing any regulation on bitcoin in the short term, according to a White House official.
Rob Joyce, special assistant to the President and Internet Security Coordinator of the White House, said in an interview with CNBC that while the government is concerned about Bitcoin and other public cryptocurrencies, officials are still far from developing an official legal framework.
At the Munich Conference on Security in Germany, Joyce emphasized that the risks and benefits of the cryptocurrency need to be better understood before embarking on a regulatory regime. On regulation of cryptocurrency, he said:
"I think we still study and fully understand what the good ideas and bad ideas are in that space, so I do not think it is close."
Joyce, who spent 27 years in the National Security Agency (NSA), said the White House is more concerned about the ability of criminals to use cryptocurrency to undermine policies on combating money laundering in traditional financial institutions.
He noted that in the case of credit card fraud, for example, individuals or companies can contact their banks and purchases can be canceled and the money can be repatriated, but With the current instantiation of bitcoin and other cryptocurrencies, if a criminal act occur, it becomes a problem to combat, when you cant find any trail.
Joyce's comments are in line with US Treasury Secretary Steven Mnuchin, who said at a Davos conference in January that his primary concern with Bitcoin was its use for criminal activities.
"It's something we look at very closely and we'll keep watching," Mnuchin said in January. "The first and foremost point is to make sure that people can not use bitcoins for illegal activities. Therefore, we want to ensure that it is not used for fundind the dark web. And that's something that concerns us today."
Some regulators have warned lawmakers against the confusion of the emerging blockchain ecosystem of authoritarian regulations. For example, in a recent US Senate hearing, Commodity Futures Trading Commission (CFTC) President J. Christopher Giancarlo said all new Bitcoin regulations should be carefully designed to address the market-specific issues.
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