United States President Joe Biden is poised to release a crypto executive order this week, an administration official with knowledge of the matter disclosed.
The EO will direct government agencies to conduct detailed examinations of various areas of the crypto asset landscape in order to develop an extensive regulatory framework.
According to reports, the executive order would mandate the Treasury Department, State Department, and Office of the Attorney General to investigate the possibility of launching a digital currency issued by the US Federal Reserve.
Biden’s crypto policy announcement has been delayed because of a disagreement between Treasury Secretary Janet Yellen and White House officials over the scope of the planned EO, the sources said.
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Crypto Executive Order: For Financial Stability
The EO was anticipated to be signed last month but was delayed due to a dispute between Yellen’s staff and National Economic Council officials, the grapevines said, but a Treasury official refuted the claim as “incorrect.”
The Biden administration has made a concerted attempt to regulate the sector on a broad scale.
A veteran computer fraud prosecutor has been hired to spearhead the Justice Department’s national cryptocurrency enforcement team, while the Federal Bureau of Investigation has formed a special unit for blockchain analysis and cryptoasset confiscation.
The US Financial Stability Oversight Council, established during the 2008 financial crisis to examine systemic risks, will be tasked with studying economic stability concerns related to virtual assets.
Total crypto market cap at $1.751 trillion in the daily chart | Source: TradingView.com
Biden EO To Address Many Issues
Additionally, the EO will look at steps to protect businesses, consumers, and investors. It will also address concerns such as privacy, distributed ledger technology, and stablecoins.
Biden’s crypto executive order is the 81st he has approved since assuming the presidency in January 2021. Over a four-year period, the previous administration issued 220 executive orders, whereas President Barack Obama issued 276 during his eight-year stint.
Federal agencies have taken a piecemeal approach to digital assets in recent years, and Biden’s staff is under pressure to take a leadership role on the subject.
Industry executives frequently lament what they perceive to be a lack of clarity and certainty on US standards, while others fear that China’s and other nations’ support of government-backed coinage could endanger the US dollar’s dominance.
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A few countries have already established their own digital currency, but more than a dozen others, including China and South Korea, are apparently working on their own digital currencies.
Government agencies will be expected to deal with the challenges and anxieties that occur when dealing with digital currency on a serious level for the long term as part of the White House’s full-court press on the asset class.
Meanwhile, regulators have expressed alarm about a lack of investor “safety net” and potential threats to financial stability as the crypto market grew to over $2 trillion.
Featured image from Original News, chart from TradingView.com