An administration person with knowledge of the situation said that US President Joe Biden is set to issue a crypto executive order this week.
In order to build a comprehensive regulatory framework, the EO will direct government agencies to conduct exhaustive studies of many aspects of the crypto asset ecosystem.
According to sources, the presidential order would direct the Treasury Department, State Department, and Attorney General’s Office to study the feasibility of the US Federal Reserve issuing a digital currency.
The release of Biden’s crypto policy has been postponed because to a disagreement between Treasury Secretary Janet Yellen and White House officials over the scope of the proposed EO, according to the sources.
Executive Order on Cryptocurrency: For Financial Stability
According to the grapevines, the EO was supposed to be signed last month but was postponed owing to a disagreement between Yellen’s staff and National Economic Council officials, but a Treasury official denied the report as “incorrect.”
The Biden administration has made a concentrated effort to regulate the industry at a national level.
The Justice Department has hired a seasoned computer fraud prosecutor to lead its national cryptocurrency enforcement team, and the Federal Bureau of Investigation has developed a special unit dedicated to blockchain study and cryptoasset seizure.
The US Financial Stability Oversight Council, which was formed in the aftermath of the 2008 financial crisis to look into systemic risks, will be entrusted with looking into concerns about economic stability associated to virtual assets.
Biden’s EO Will Address a Wide Range of Issues
The EO will also consider how to safeguard businesses, consumers, and investors. Concerns about privacy, distributed ledger technology, and stablecoins will also be addressed.
Since taking office in January 2021, Biden has signed 81 executive orders, the most of any president. The previous government issued 220 executive orders over a four-year period, whereas President Barack Obama issued 276 throughout his eight-year tenure.
In recent years, federal agencies have taken a piecemeal approach to digital assets, and Biden’s team is under pressure to take the lead on the issue.
Industry executives frequently bemoan what they see as a lack of clarity and consistency on US standards, while others worry that China’s and other countries’ backing for government-backed currency might jeopardise the dollar’s dominance.
A few countries have already launched their own digital currencies, but more than a dozen more, including China and South Korea, are reportedly developing their own.
As part of the White House’s full-court press on digital currency, government agencies will be expected to cope with the issues and worries that arise when dealing with the asset class on a long-term basis.
Meanwhile, as the crypto market ballooned to over $2 trillion, regulators expressed concern about a lack of investor “safety net” and potential dangers to financial stability.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.