US President Joe Biden is reportedly set to introduce an executive order directing government agencies to study the details of the cryptocurrency industry. Considering that the leader has imposed numerous regulations since the beginning of his presidential reign, it is expected that he will also push for rules in the digital asset space.
The next directive should come sometime next week as it will also focus on central bank digital currencies.
What to anticipate?
An executive order is a signed, written, and published directive from the President of the United States that manages the operations of the federal government. Although very important, it is not official legislation as Congress has the authority to repeal it.
As of February 15, 2022, President Joe Biden had signed 80 such orders. According to recent coverage, his next one will be oriented towards cryptocurrencies, CBDCs and their respective regulation in the US market.
The Democrat could ask the Departments of the Treasury, State, Justice and Homeland Security to design a comprehensive regulatory framework for the industry. Those agencies should also develop a report on the future of money and payment systems.
Cryptocurrency proponents of Mane argue that the world is going digital, putting bitcoin and altcoins center stage. And as such, they believe that cash is no longer as preferred. At the same time, fiat currencies are gradually losing their value due to rising global inflation, which could make cryptocurrencies a more attractive option for investors.
Biden’s executive order could consider measures to protect consumers, businesses and investors. Specifically, the board could call for transparency and enhanced Know Your Customer (KYC) rules.
The report further stated that the Biden administration would coordinate with other nations to standardize crypto rules.
Many are wondering if US lawmakers will introduce purpose-built cryptocurrency legislation, or treat the industry like traditional financial assets like stocks or bonds.
Joe Biden, Source: The White House
Biden’s predecessors, Donald Trump and Barack Obama, also issued executive orders on digital assets while in office. In 2018, Trump signed a directive banning any financial transactions in the US involving Venezuela’s Petro cryptocurrency.
In 2015, Obama allowed authorities to seize digital assets connected to “significant malicious cyber activity.” He also allowed officials to seize said tokens without warning.
What have the US authorities promised so far?
Unlike China, the US government has no intention of banning all cryptocurrency activities. Fed Chairman Jerome Powell stated that in October 2021, adding that supervision in space is necessary. Stablecoins, in particular, are assets that need special regulatory attention, he warned.
A few days later, the head of the US Securities and Exchange Commission, Gary Gensler, reiterated such plans. He also raised concerns about stablecoins, arguing that they could cause financial stability problems in the country’s currency network.
Earlier this year, Gensler also touched on cryptocurrency exchanges. He opined that Washington’s financial watchdogs should directly regulate such trading venues.
Featured image courtesy of WhiteHouseGov
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This post President Biden to Issue an Executive Order on Cryptocurrencies Next Week (Report)
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