The executive order will require federal agencies to examine potential regulatory changes and report what they do about cryptocurrencies. The team of Joe Biden is under pressure to play a more coordinated role, as cryptocurrency companies demand a clear regulatory framework.
US President Joe Biden will sign a long-awaited executive order to regulate cryptocurrencies, said people familiar with his plans.
The executive order would describe the strategy of the US government to control cryptocurrencies.
Concerns that companies and individuals could use crypto assets to circumvent the restrictions imposed on Russia gave origin to that decree.
That led Senator Elizabeth Warren and Senate Banking Committee Chairman Sherrod Brown to subject the crypto industry to intense scrutiny. They believe Russian people and companies may be using cryptocurrencies to evade sanctions.
The Executive Order from Joe Biden Could Be Ready in the Coming Days
The executive order, whose signature Bloomberg predicted for February, has been underway since last year. Even though President Biden should have issued it during the third week of the month, it has not happened yet.
Besides national security and the economic impact of cryptocurrencies, the order will require federal agencies to examine potential regulatory changes.
Federal agencies across the government will have to report what they do about cryptocurrencies at the end of this year.
Agencies Involved in the Plan of the Joe Biden Administration
Since the Biden administration assesses that cryptocurrencies have economic implications for national security, several agencies are involved in the plan. They include the Treasury Department, the State Department, the Department of Commerce, the National Economic Council, and the National Security Council of the White House.
The plan could start to create roles for agencies across the government, from the State Department to the Department of Commerce.
Joe Biden keeps his team under pressure to play a more coordinated role, as executives in the crypto industry complain that US rules lack clarity.
Cryptocurrency companies have demanded a clear regulatory framework for their industry for months. March seems to be the probable month, but t remains to wait for the final publication by the White House.
The Fed Is Considering Creating an American CBDC
The Joe Biden administration might consider the possibility of the United States issuing a central bank digital currency (CBDC). The Fed recently published a preliminary document about CBDCs and opened a public comment period.
The document tiptoes around an issue that has given rise to considerable debate among the senior ranks of the Fed. However, other central banks worldwide have been exploring the adoption of CBDCs.
A CBDC could provide a secure payment option for households and businesses as the payment system becomes faster, says the Fed. However, the document warns that it would also lead to financial stability risks and privacy issues.
Various people who have attended government meetings say the Biden administration could refrain from adopting a strong position on CBDCs. They argue that the US Federal Reserve is still considering adopting those centralized digital currencies.
The United States could continue to lead the cryptocurrency market worldwide thanks to a CBDC. However, the Fed stated that it would wait for the support of the White House and the US Congress to move forward.
By Alexander Salazar
