Biden To Issue Executive Order on Cryptocurrencies This Week
President Joe Biden of the United States is preparing to sign a crypto executive order this week, an administration person with knowledge of the situation said.
The executive order will require government entities to perform in-depth assessments of many aspects of the cryptocurrency asset environment in order to build a comprehensive regulatory framework.
According to sources, the executive order would direct the Treasury Department, the State Department, and the Office of the Attorney General to explore the feasibility of the US Federal Reserve issuing a digital currency.
Biden’s statement on crypto policy has been postponed, according to insiders, due to a dispute between Treasury Secretary Janet Yellen and White House officials over the scope of the intended EO.
Executive Order on Cryptocurrency: For Financial Stability
The EO was expected to be signed last month but was delayed owing to a disagreement between Yellen’s staff and officials from the National Economic Council, according to the grapevine, but a Treasury source dismissed the report as “incorrect.”
The government of Vice President Joe Biden has made a deliberate effort to regulate the industry broadly. The Justice Department has recruited a seasoned computer fraud prosecutor to lead its national cryptocurrency enforcement team, while the Federal Bureau of Investigation has established a special section for blockchain research and crypto-asset seizure.
The US Financial Stability Oversight Council, which was created in the aftermath of the 2008 financial crisis to assess systemic risks, will be entrusted with examining economic stability issues about virtual assets.
Biden’s Executive Order Will Address Numerous Issues
Furthermore, the EO will consider safeguards for companies, consumers, and investors. Additionally, it will discuss privacy, distributed ledger technologies, and stablecoins.
Biden’s crypto executive order is his 81st since taking office in January 2021. The previous government issued 220 executive orders during a four-year period, whereas President Barack Obama issued 276 throughout his eight-year tenure.
In recent years, federal agencies have adopted a piecemeal approach to digital assets, and Biden’s staff is under pressure to take a leading position on the matter.
Industry executives regularly complain about a perceived lack of clarity and confidence over US standards, while others worry that China’s and other countries’ backing for government-backed coinage might jeopardise the US dollar’s supremacy.
While a few nations have already developed their own digital currencies, over a dozen others, including China and South Korea, seem to be developing their own.
Government agencies will be required to address the difficulties and worries inherent in dealing with the digital currency on a long-term basis as part of the White House’s all-out assault on the asset class.
Meanwhile, authorities have raised concern about the absence of a “safety net” for investors and possible dangers to financial stability as the cryptocurrency market ballooned to over $2 trillion.