President Joe Biden of the United States is expected to release an executive order on cryptocurrency this week, according to a senior administration official with an understanding of the facts.
Why Release a Crypto Executive Order (EO)?
The Executive Order will direct government entities to conduct in-depth investigations into various aspects of the crypto asset environment in order to build a comprehensive regulatory framework for the cryptocurrency industry.
In accordance with reports, the Executive Order would direct the Treasury Department, the State Department, and the Office of the Attorney General to explore the feasibility of issuing a digital currency issued by the United States Federal Reserve.
A disagreement between Treasury Secretary Janet Yellen and White House officials over the scope of the proposed initial coin offering (EO) has caused Biden’s crypto policy announcement to be postponed, according to the sources.
An EO Aimed at Ensuring 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 with virtual assets.
Issues to be Adressed by the EO
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 jeopardize 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.