The US Commerce Department is to take control of a scheme designed to help create an internet ID for Americans.
The White House cyber security coordinator, Howard Schmidt, believes the US Commerce Department is an ideal place in Government to focus efforts on creating an "identity ecosystem" for the internet.
According to CBS News, the project has been named the National Strategy for Trusted Identities in Cyberspace by the Obama administration and will be released in the next few months.
The idea is likely to receive praise from privacy and civil liberty groups who had previously voiced concern over the dual roles shared by both the police and the intelligence agencies.
"We are not talking about a national ID card. We are not talking about a government controlled system," said US Commerce Secretary, Gary Locke.
"What we are talking about is enhancing online security and privacy and reducing and perhaps eliminating the need to memorize a dozen passwords, through creation and use of more trusted digital identities."