The Biden administration appears to be preparing to issue an executive order defining the government’s cryptocurrency approach. This will be delivered by President Joe Biden and will be released early next month.
This paper aims to present a complete, comprehensive, and extensive strategy on cryptocurrencies while also recognizing their risks and opportunities. The presidential order would direct federal agencies to identify the risks and scope of bitcoin thoroughly and accurately. Bloomberg broke the story on Friday without citing any sources.
The White House has now positioned itself at the epicenter of US crypto policy. Concerning the longest period, federal agencies have researched and offered regulatory recommendations for Bitcoin. The White House would assume a prominent role in developing and regulating policies concerning digital assets due to this directive. The strategy would be released in about a week.
There Is A Lack Of Clarity Regarding Crypto Rules And Regulations
According to Bloomberg, the strategy was drafted as an executive order, and multiple sessions were conducted to deliberate and discuss the executive order. This decision to issue an executive order comes after Joe Biden’s staff was put under pressure to analyze the hazards and extent of digital currency. Soon after, Biden’s team decided to cease the haphazard approach and charged the White House with examining the industry’s risks and rewards.
Industry professionals have expressed dissatisfaction with the lack of specific US laws in the past. Many people are also concerned about the involvement of government-backed currencies from China and other countries, which might undermine the dollar’s dominance.
Summarizing the Executive Order
The present or late-stage draught of the executive order includes information about the economic, national, and regulatory problems that the digital asset entails. According to persons familiar with the issue who have asked not to be identified, reports from several regulatory authorities would be considered while crafting the executive order. This particular development comes after the consumer’s interest in the volatile crypto market has been ignited due to Bitcoin’s significant price drop in the last few days.
As previously stated, reports from other regulatory bodies will aid in compiling a comprehensive report; one such report is expected from the Financial Stability Oversight Council. The FSOC includes the chiefs of Washington’s key financial watchdogs; this report will contain a wealth of information about the systematic impact of cryptocurrencies.
There could be another report mentioning illegal uses of virtual currency. This instruction also necessitates the participation of other departments, such as the State Department or even the Commerce Department. The Office of the Comptroller of the Currency, the Securities and Exchange Commission, and the Commodity Futures Trading Commission have issued guidance letters, unofficial statements, and rulemaking that could help determine various aspects of the crypto industry are expected to comply with federal law.
On the other hand, the administrative plan is still being revised before it is concretely formulated.