The US President Joe Biden is set to release an executive order on cryptocurrencies this week, according to reports. It will direct a number of federal entities to develop a government-wide policy for regulating cryptocurrency assets.
An administrative official familiar with the topic told Yahoo Finance that US President Joe Biden is poised to publish an executive order on bitcoin this week. The news that the Biden administration was working on a crypto executive order initially surfaced in January.
As per the journal, the executive order would urge a diverse range of government institutions to investigate cryptocurrencies and central bank digital currency (CBDC) and formulate a government-wide policy to regulate crypto assets.
Multiple government entities, including the Departments of the Treasury, State, Justice and Homeland Security, will be requested to prepare a study on the sustainability of money and payment solutions.
The Financial Stability Oversight Council (FSOC) will look at challenges of financial stability emanating from digital assets. Cryptocurrencies, according to the International Monetary Fund (IMF), may constitute a threat to financial stability going forward.
The Attorney General, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau will look into how the crypto industry’s rise may affect market competitiveness. The Federal Trade Commission (FTC) recently issued multiple cautions concerning cryptocurrency investment scams.
Market protection measures will be considered by the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) within their jurisdictions. Last week, SEC Chairman Gary Gensler stated that the SEC will collaborate with the CFTC to regulate the crypto market.
After conferring with the SEC, CFTC, and federal banking regulators, the Treasury Department will compile a report for the president on how to mitigate against the vulnerabilities of cryptocurrencies.
Consumer, corporate, and investor defensive measures will also be evaluated as part of the executive order. Stablecoins, privacy, and distributed ledger technology (DLT) will be among the topics covered.
The FBI created an innovative section to combat cryptocurrency exploitation last week, and the Department of Justice (DOJ) named the first director of its National Cryptocurrency Enforcement Team.
The United States will also consider collaborating with other countries to unify encryption standards. Global authorities are “going full throttle” on crypto regulation, according to Robert Ophèle, a member of the Financial Stability Board (FSB). “With the proliferation of cross-border digital market activity, the present framework is no longer suitable for the purpose,” he said.