Will the US crack down on cryptocurrency?

The US is moving to craft new rules to govern cryptocurrencies amid rising concerns that the fast-growing industry is a haven for criminals and poses risks to financial stability.

The White House said its goal was to protect consumers, while maintaining America's technological leadership.

The executive order comes as investment in digital assets such as Bitcoin has exploded, up from an estimated $14bn to more than $3tr in five years.

Some fear regulation has not kept pace.

More than 100 countries, including China, are currently exploring or piloting the use of digital currencies by central banks, for use both domestically and in cross-border transactions. White House officials said this had "implications for the centrality of the US dollar in the global financial system".

While different parts of the US government have studied the issue, including the central bank, there has been little action.

An executive order signed by President Joe Biden on Wednesday calls for officials to develop proposals within 180 days.

"This is a way to organize ourselves with urgency so that we have a coherent and coordinated view on digital assets," administration officials said in a briefing with reporters.

Officials said they want stronger anti-money laundering protections and controls, among other changes.

The US Treasury Department has also signalled it wants greater oversight of firms that offer digital currencies that bill themselves as backed by the dollar.

Surveys suggest that one in 16 Americans has invested in cryptocurrency - about 40 million people - including many in minority communities who have historically had less access to banks.

The issue has also gained urgency amid the Ukraine war, as politicians raise concerns that cryptocurrency could be used to evade financial sanctions on Russia.

Many in the industry have pushed for the government to clarify what kind of rules and regulation might be coming.

Bitcoin surged more than 8% on Wednesday.